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

Utility and consumer surplus, Jeremy is an economics student who loves hamb...

Jeremy is an economics student who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u

Quantity supply, factor influencing quantity supplied

factor influencing quantity supplied

New classical busines cycle thoery, NEW CLASSICAL BUSINES CYCLE THOERY: ...

NEW CLASSICAL BUSINES CYCLE THOERY: Yang, Xioaokai, Economics: New Classical versus Neoclassical Frameworks, Oxford: Blackwell Publishers. The book goes on to rigorously dev

What is ceteris paribus, What is ceteris Paribus? Ceteris paribus is a...

What is ceteris Paribus? Ceteris paribus is a Latin phrase, literally translated as "other things the similar," and usually rendered in English as "all other things being equa

Determine the economic order quantity, Question: Describe the meaning o...

Question: Describe the meaning of ABC inventory control and on what key premise is this system based? The finance department of Electric Corporation gathered the following i

DEFNITION, WHAT ARE THE COMPONENT OF ECONOMICS

WHAT ARE THE COMPONENT OF ECONOMICS

Cross-price elasticity of demand, Cross-Price Elasticity of Demand is expla...

Cross-Price Elasticity of Demand is explained below: Cross price elasticity of the demand is the percentage change in the quantity demanded of a particular good, with respect t

Good governance to ensure implementation of economic policy, GOOD GOVERNAN...

GOOD GOVERNANCE TO ENSURE IMPLEMENTATION OF ECONOMIC POLICY: Government is very sensitive to the expectation of the people and sincere efforts in this direction have already

Solow-swan model, Consider an economy, in which technological capabilities ...

Consider an economy, in which technological capabilities become obsolete. Use the Solow-Swan model and the knowledge spillover model to explain how its productivity growth rate dep

Oligopoly, what makes it differ from other market structures

what makes it differ from other market structures

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages