Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Relationship between AC, AVC, AFC and MC is elucidated graphically by drawing respective cost curves in Figure below. Behaviour of cost curves is elucidated below.
Figure: Marginal and Average Cost Curves
Because AFC is falling steadily as output increases, AFC curve is also falling steadily from left to right. Mathematically, AFC curve approaches both axes, which is, it gets very near to though never touches either axis. Because we are dividing the constant fixed cost by different levels of output, AFC curve is a rectangular hyperbola. This refers that if we multiply AFC at any point on AFC curve with corresponding quantity of output, we would always get the same total fixed cost. This property of the AFC curve demonstrates that TFC is constant throughout.
AVC curve falls initially, reaches a minimum and then rises as output increases. It falls slowly as the firm's output rises from zero to normal capacity level. Once normal capacity output is reached AVC curve rises sharply with the increase in output. This is due to the fact that use of more and more of the variable factors, say labour, will result in overcrowding and also to problems of organisation. Further, as the existing fixed factors are employed more intensively machines will breakdown more often. All these lead to sharp increase in AVC.
OBJECTIVES OF CREDIT CONTROL The old objective of controlling credit creation by the commercial banks in the country was dictated by considerations of maintaining stability of
Laws of returns to scale alludes to the long-run analysis of the laws of production. In the long run, output can be increased by varying all factors. So in this section we study th
Describe the Managerial decisions Managerial decisions are an important component in the working wheel of an organisation. The failure or success of a business depends upon the
In the national income analysis, investment refers to the value of than part of the aggregate output for any given time period which takes the form of construction of new structure
Interest rates Decreasing the rate of interest may not encourage investment but increasing the interest rate tends to lock up liquidity in the financial system.
Direct control and Moral Suasion Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restr
State the Demand analysis Analysis of demand is assumed to forecast demand that is a basic component in managerial decision-making. Demand forecasting is of importance since
discuss baumols dynamic models
a bus operates two routes,one to harare and another one to johanesburg.the company analyst estimated that the elasticity of demand for joburg is 0.9 while for harare is 2.the compa
Question 1: Either ‘Today the business organizations are quite different from the traditional classical firm with a wide range of objectives.' Discuss the above statement
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd