Difficulties in measuring cost, Microeconomics

Assignment Help:

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

Related Discussions:- Difficulties in measuring cost

Bureaucratic problems, BUREAUCRATIC PROBLEMS: Bureaucratic problems en...

BUREAUCRATIC PROBLEMS: Bureaucratic problems encountered as hurdles in the implementation of economic policies are listed below: • Low levels of efficiency, effectiveness,

Aggregate household indebtedness, Aggregate household indebtedness: Th...

Aggregate household indebtedness: This is the purchasing power of the sum of money outstanding that households have borrowed and are currently obligated to repay. If household

What do you meant by real gdp, Q. What do you meant by Real GDP? Real G...

Q. What do you meant by Real GDP? Real GDP:Value of total gross domestic product (which is, all the services and goods produced for money in the economy) adjusted for effects o

Monopsony, what are the advantages of monopsony?

what are the advantages of monopsony?

Illustrate the economic growth, Illustrate the Economic Growth Up until...

Illustrate the Economic Growth Up until 1800 growth rates of human populations were glacial. Population growth between 5000 B.C. and 1800 averaged less than one-tenth of a perc

Assignment , I need someone to solve my assignment

I need someone to solve my assignment

Externalities, What are corrective taxes? Why do economists prefer them to ...

What are corrective taxes? Why do economists prefer them to regulations as a way to protect the environment from pollution. Discuss

Explain and illustrate the economy adjustment in medium run, 1- Suppose the...

1- Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) explain and illustrate the economy adjustment ( in the medium run)

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