You can calculate these costs in two ways depending on whether or not the cost components are fixed or variable. What are variable costs? These are the direct costs associated with the inventory. These typically include the costs to pick, pack and transport the inventory among other things. Va...
Attaching your labour as a fixed sum is easy to do. When building your quote you should decide on a figure that you want to make from that project. You then add that number to the total cost, once you’ve calculated all your expenses. For example, if you wanted to make £500 from...
this move towards realism in economics should be a good thing. If one thinks of economists as like biologists and policymakers as like doctors, then just as better biology has led to more effective medicine, so too should a more realistic economics...
How does the unemployment rate relate to macroeconomics? What factors determine the sample size requirements for estimating population proportion? Why would the equilibrium price change in the short-run? How do I calculate after tax net income? total fixed cost: $400.000, expected sales: 100,000,...
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Opportunitycostisacomponentofthecollectiveconceptofeconomiccost.Innumericalterms,theopportunitycostvalueisnothingbutthedifferencebetweenthecostofthedesiredalternativeandthecostofthenextbestalternative.Economiccostiscollectivelycomposedoftotalcost(fixedcostplusvariablecostastheyappearincostaccounting),averagecost(averagefixedcos...
the value of the commodity it is convertible into rises. When it rises above the fixed price, it is profitable for those holding credit (i.e., claims on the currency) to sell their debt for currency in order to buy the tangible asset from the government at below the market price. The...
special case where, in theory, the optimal amount of public goods is produced and the cost ofpublic goodsis fairly shared among everyone. It describes an ideal state rarely, if ever, achieved in reality, but is used to help craft tax policy and is an important concept inwelfare economics....
Cost considerations also play a role in short-run production decisions. Firms categorize costs into fixed costs, which remain constant regardless of output level, and variable costs, which change with the level of production. By analyzing average and marginal costs, firms can determine the most cos...
The number of suppliers: When few firms can give a company something it needs to stay in business, each has greater negotiating power. They can raise prices or reduce quality without fear of losing business. Uniqueness: If a supplier provides a unique product or it's not easy to find a ...