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Cost curves can be depicted for both the short run and the long run. The short run is the operating period during which at least one input (typically capital) is fixed in supply. During this period, fixed costs can be incurred even if the firm produces no output. In the long run, there are no fixed costs -- all inputs and costs are variable. Short-run cost curves are sometimes called operating curves because they are used in making near-term production and pricing decisions. Fixed costs are irrelevant for these decisions. Long-run cost curves are referred to as planning curves, since they play a key role in longer-run planning decisions related to plant size and equipment acquisitions.
The minimum efficient scale is defined as that plant size at which long-run average cost is first minimized. The minimum efficient scale affects both the optimal plant size and the level of potential competition. Industries where the average cost declines over a broad range of output are characterized as having economies of scale.
A learning curve displays the relation between average cost and cumulative volume of production. For some firms, the long-run average cost for producing a given level of output declines as the firm gains experience from producing the output (that...
Economies of scope help explain why firms often produce multiple products.
The profit-maximizing output level occurs at the point where marginal revenue equals marginal cost. At this point, the marginal benefits of increasing output are offset exactly by the marginal costs.
The marginal revenue product of input I (MRPi) equals the marginal product of the input times marginal revenue. Profit-maximizing firms use an input up to the point of where the MRP of the input equals the input price. At this point, the marginal benefit of employing more of the input is offset exactly by its marginal cost.
Managers often use estimates of cost curves in decision making. A common statistical tool for estimating these curves is regression analysis. One common problem in statistical estimation is the difficulty of obtaining good information on the opportunity costs of resources. Another problem with estimating cost curves involves allocating fixed costs in a multiproduct plant. Cost accounts track the costs and estimate product costs.
This type of measurement is best used when the data has also been captured at the ordinal or ratio level as the orthogonality of the data set is reliable (Marshall, Ruiz, Bredillet, 2008). Extrapolating statistics to a broader population is also dependent on the approach of randomization used. When a solid methodology, sampling frame and approach to randomization have all been defined, inferential data is often used in organizations
Agricultural Assessment Economics of Production and Resource Management: Assessment of the Environmental Impact Associated with Human Waste Fertilizer in Agricultural Production The objective of this study is to conduct an assessment of the environmental impact associated with human waste fertilizer in agricultural production. National Geographic News reporter Tasha Eichenseher reported that 200 million farmers in developing countries are making use of raw sewage due to water shortages and rising costs of fertilizer
But neophytes should not attempt to do this. Halved coconuts can be dried in one of two ways. The first is by letting them dry by the heat of the sun, which takes a longer time. The other and faster way is by heating them. A bamboo house or shack without walls is built at about 3 feet above the ground. It has only a roof and a floor.
Theoretically, CLIL draws on research that situates the integration of language and content as the relationship between form and meaning. An understanding of the theory and practice related to the content-based classroom is essential to the present study. In this section of the chapter, I outline the underlying theory and rationale commonly cited as a basis for CLIL, review empirical research that has evaluated CLIL in the classroom, and
) I will return to the strengths and limitations of growth accounting as a tool to use to assess the economic development of these nations below. Growth Accounting Growth accounting is an economic method designed to measure the relative and absolute contributions of different factors to economic growth and development. Developed by Robert Solow in 1957, this methodological approach disaggregates or decomposes the different elements of economic growth. The most important assumption
economic and quantitative analysis topics, roughly six in total. Those topics, in order, are focus on a non-core variable (and model) for the country of Nigeria, analysis of the World Bank World Development Indicators (WDI) model, comments on regression and the validity questions rising from within, the general problems and issues with regression analysis in general, whether any of the variable in the author's personal model have problems related