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
Please provide detailed answers, showing all your work, to all five sections in problem 15.9 in the Nicholson and Snyder book. This is an individual take home task due at 11:59pm o

What are the main weaknesses of using demand-side policies? Trade-off issues a) Growth and low unemployment often come with inflation b) Government stimulatory policies m

Question: Product differentiation and entry/exit Two differentiated goods, apples and oranges, are located at the two extremes of a linear product space (a segment of length 1)


discuss whether marginal utility is a realistic piece of economic analysis in explaining consumer demand

Describe stabilisation policies as by the International Monetary Fund (IMF). Define stabilisation policies as basically a list of demands set forward by the IMF to a debtor nat

Non-Accelerating-Inflation Rate of Unemployment (NAIRU): This theory is a variant of neoclassical natural rate of unemployment. As in original natural rate theory, NAIRU advocates



More details on mixed bundling