Difficulties in measuring cost, Microeconomics

Difficulties in Measuring Cost

 1) Output data may represent an aggregate of different type of products.

 2) Cost data may not include opportunity cost.

  3) Allocating cost to a particular product may be difficult when there is more than one product line.

* Cost Functions and the Measurement of Scale Economies

- Scale Economy Index (SCI)

  • EC = 1, SCI = 0: neither economies nor diseconomies of scale
  • EC > 1, SCI is negative: diseconomies of scale
  • EC < 1, SCI is positive: economies of scale
Posted Date: 10/12/2012 4:14:07 AM | Location : United States







Related Discussions:- Difficulties in measuring cost, Assignment Help, Ask Question on Difficulties in measuring cost, Get Answer, Expert's Help, Difficulties in measuring cost Discussions

Write discussion on Difficulties in measuring cost
Your posts are moderated
Related Questions
With current technology, suppose a firm is producing 400 loaves of bread daily. Assume that the least cost combination of resources in producing those loaves is $180 ( 5 units of


graphical illustrations describing the influence of an increase in immigrants on the market supply of labour

(a) Describe the different types of inflation in a country. (b) Describe the trade-off between inflation and unemployment, using appropriate diagrams. (c) Mauritius has bee

The Productivity Growth Slowdown However in 1973 steady trend of climbing rates of productivity growth stopped cold. Between 1973 and 1995 measured growth in output per worker

Resilience in Addition to Strength: The BOP has been in overall surplus since 1996-97 with forex reserves rising, on an average, by $8.50 billion per annum during 1996-97 to 2

What do you mean by the utility function? The Utility Function: Sometimes this is easier to work directly along with the preference relation and its connected sets. Althou


You are the final voter in a brand new start-up league, the Ultra Fun Foosball League (UFFL). The directors are looking to you to make the decisions on how many teams to place in a

National Income Determination: National Income Determination deals with what determines the size of a nation’s national income. The size of a nation’s national income is deter