Summary
Summary A Level Revision Notes Economics Unit 3 Costs
- Course
- Institution
- Book
A Level Revision Notes Economics Unit 3 Costs Revision Notes
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
A Level Revision Notes Economics Unit 3 Price Discrimination
-
A Level Revision Notes Economics Unit 3 Monopoly
-
A Level Revision Notes Economics Unit 3 Competition
Seller
Follow
mmammadov050
Content preview
Economic cost Accounting cost Implicit Opportunity CostAccounting costs s are visible and or directly quantifiable costs
ex raw materials labour
Economic costs are estimated by adding on to accounting costs the implicit
Explicit cost involve transfer of money and can be recorded on a balanceShee
ex buying new buildings
paying500 staff chlorine
buying litres of
Implicit cost related to the opportunity cost that leads to lower income
usually not recorded
ex giving workers a day off will lead to dropin sales and income
Fixed cost
costs that do not vary with the level of output
costs exist in the short run
ex Rent Advertising Insurance Interest Payment Wages
Variable cost
costs that vary with the level of output
costs exits in the short run and long run
ex Rawmaterials taxes commissions lityou hit a goal you get payed a certain amount
short run
period during which one or more factors of production are fixed
ex making decisions relating to current production
Long run
when all factors are variable no fixed factors
when you are planning for future
ex should we buy new machinery or not
Diminishing Marginal Productivity
when at least one factor of production remains fixed and additional un
of production labour are added at first
of a variable factor
marginal product will increase but then comes to a point
where it begins to decrease
also known as the law of diminishing returns
, Nso n Wn is he 1 w I ins j
pgiunrtuewfenre theotwh.ee
Marginal Outputs Outputs
Product
Average Total Output
of labour
Product Unit
Ex 3 In 5 workers
MRAP
4 8
Hence APfalls from 8 to 7
If then AP rises
MP AP
It MP AP
then AP does not change
It MPs AP then AP falls
Exit
MP AP
85 80
Hence AP rises to 81.6
s
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mmammadov050. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now