Determinants of short run cost, Microeconomics

Assignment Help:

Determinants of Short Run Cost

- The relationship among the production function and cost can be exemplified by either increasing returns and cost or decreasing returns and cost.

- Increasing returns and cost

  • With the increasing returns, the output is increasing relative to input and variable cost and total cost will fall relative to the output.

- Decreasing returns and cost

  • With the decreasing returns, the output is decreasing relative to input and variable cost and total cost will increase relative to output.

For Example: Assume that the wage rate (w) is fixed relative to number of workers hired.

Then: 1107_determinants of short run cost.png

345_determinants of short run cost1.png

In conclusion:1096_determinants of short run cost2.png


Related Discussions:- Determinants of short run cost

Selective in exports, Selective in Exports: There are many industries ...

Selective in Exports: There are many industries where India has an advantage because of relatively lower costs of all forms of manpower whether it is professional or factory l

Steps of the basic analytical framework in modern economics, What are the s...

What are the steps of the basic analytical framework in Modern Economics? Framework is very significant to master this fundamental analytical framework, particularly, these fiv

Optimal consumption bundle and marginal utility per dollar, What is the opt...

What is the optimal consumption bundle and marginal utility per dollar? The optimal consumption bundle is the consumption bundle which maximizes a consumer's total utility sp

Technology of production, The Technology of Production *  The Productio...

The Technology of Production *  The Production Process - Combining inputs or the factors of production to attain an output *  Categories of Inputs (or the factors of prod

Elasticity of Demand , Assume that a shoe salesman learned the price elasti...

Assume that a shoe salesman learned the price elasticity of demand for her products is -1.5. How many percent will increase in total sales (revenue) if she cuts the price by 10%?

Finding the rate of iodine clock reaction?, Volumes (mL) of Solution 0.20M ...

Volumes (mL) of Solution 0.20M 0.20M 0.010M 2% 0.20M 0.20M NaI NaCl Na2S2O3 Starch K2SO4 K2S2O8 ?2ml 2ml 2ml 1ml 2ml 2ml ?2ml 2ml 2ml 1ml 0ml 2ml ?4ml 0ml 2ml 1ml 2ml 2ml Time Exp

Demand and supply, identify which curve (demand or supply) will be affected...

identify which curve (demand or supply) will be affected?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd