Total cost in economics is the cost incurred by a firm or a producer in the production of a given quantity of a good or service. This includes all the fixed costs and variable costs.Answer and Explanation: The variable cost is defined as that ...
Is Marginal Cost the Same as Variable Cost? The termmarginal costrefers to any business expense that is associated with the production of an additional unit of output or by serving an additional customer. A marginal cost is the same as an incremental cost because it increases incrementally ...
What is an explicit cost? What is a contingency variable? What is the cost of goods manufactured formula? What is the opportunity cost of attending an economics class? What are examples of a virtual value chain? What is monolithic pricing? What are customer-switching costs? What does cost ba...
Total Variable Cost is the cost that is directly connected with the production of any item. It is called so as such costs change as and when there is a change in the volume or quantity of outputs to be produced. This means, if the number of products to be manufactured or produced incre...
What Is Elasticity? Elasticity is a term used in economics to describe responsiveness in one variable to changes in another. Typically, elasticity is used to describe how much demand for a product changes as its price increases or decreases. This is also known asdemand elasticity. ...
Definition:Variable costs are production costs that change in proportion to the amount of goods that are produced. In other words, for every good that is produced, variable costs increase by the same amount. In any production process, manufacturers incur a variety of costs. Cost accountants and...
What is the term in behavioral economics for when a buyer is influenced by the profit made by the seller rather than the actual selling price? What are the Fixed Costs and Variable Costs for a car wash business? Is it likely to experience economies of scale?
Simple Interest: This type of interest is based solely on the original loan amount (the principal). Use the formula: Principal × Interest Rate × Time = Interest. Example: Borrowing $500 at a 5% annual interest rate for one year will cost $25 in interest ($500 × 0.05 × 1). Compoun...
Home›Economics›Macroeconomics›What is a Marginal Cost? Definition:Marginal cost is the additional cost incurred for the production of an additional unit of output. The formula is calculated by dividing the change in the total cost by the change in the product output. ...
agreed upon by both the buyer and the seller. In contrast, variable pricing is normally extended on a one-time basis. Should the customer wish to place a second order at a later date, the circumstances are assessed anew, and alternate pricing is issued if the seller believes it is merit...