File Details
Cost Functions | |
File name | Cost Functions |
File Description | All production in real time occurs in the short run. The short run is the conceptual time period in which at least one factor of production is fixed in amount and others are variable in amount. Costs that are fixed, say from existing plant size, have no impact on a firm's short-run decisions, since only variable costs and revenues affect short-run profits. Such fixed costs raise the associated short-run average cost of an output long-run average cost if the amount of the fixed factor is better suited for a different output level. In the short run, a firm can raise output by increasing the amount of the variable factor(s), say labor through overtime. |
Category Name | Management Studies |
Subject Name | BUSINESS ECONOMICS |
Module Name | Cost Concepts |
Micro Category Name | Short Run Costs |
Level | Masters |
File Type | |
File | Login to Download |
File | Login to Download |