Marginal costs are the costs it takes to produce different amounts of a given product. Learn how to calculate marginal costs, total costs, and average costs, and the ways that these are used to determine an ideal price per unit of a good. What Is a Marginal Cost? Let's say you owne...
How Do You Calculate Total Surplus? Consumer surplus plus producer surplus equals total surplus. Hence, total surplus is the willingness to pay price, less the economic cost. Total surplus is maximized when the market equilibrium price of a product or service is set at the intersection of the ...
Opportunity cost—When an individual makes a decision, they also calculate the cost of forgoing the next best alternative. If, for instance, you use your frequent flier miles to take a trip to the Bahamas, you will no longer be able to redeem the miles for cash. The missed cash is a...
Cost of Living: Definition, How to Calculate, Index, and Example The cost of living is the amount a person needs to spend to cover basic expenses such as housing, food, taxes, and healthcare in a particular place. more What Is the Natural Unemployment Rate? The natural unemployment rate...
, and labor costs. The result of that number is then divided by the number of weeks (or hours) required until “lights out”—the moment the original target environment is finally retired. To reiterate, it’s critical to track not just the total migration cost but also that weekly cost....
Total Variable Cost Calculation: Variable cost differs with the volume of the output produces. Here is the formula used to calculate the variable cost.
Calculate the marginal utility. \\ What is a simple definition for marginal value? When the marginal cost of something is free, we will tend to consume it until our marginal utility equals zero. Why would we never go until our marginal utility is negative? ...
In microeconomics – the field of economics concerned with the decision-making patterns of individual buyers and businesses – the law of demand states that when the cost of a product or good increases, demand for that product or service decreases and vice versa, when all other factors are equa...
Microeconomics: Why profit is maximum when Marginal Cost equals Marginal Revenue? What are the profit-maximizing level of output and profit-maximizing price for a monopoly? Explain in terms of demand, marginal revenue, average total cost, and marginal ...
Explain why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistically competitive market (all other factors held constant). Explain how purely competitive firms can use the tota...