A. Total fixed cost and output:
TFC refers to total money expenses incurred on fixed inputs like plant, machinery, tools & equipments in the short run. Total fixed cost corresponds to the fixed inputs in the short run production function. TFC remains the same at all levels of output in the short run. It is the same when output is nil. It indicates that whatever may be the quantity of output, whether 1 to 6 units, TFC remains constant. The TFC curve is horizontal and parallel to OX-axis, showing that it is constant regardless of output per unit of time. TFC starts from a point on Y-axis indicating that the total fixed cost will be incurred even if the output is zero. In our example, Rs 360=00 is TFC. It is obtained by summing up the product or quantities of the fixed factors multiplied by their respective unit price.
What is the relation ship between total fixed cost and output?
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the fixed cost per unit of output.
To calculate average fixed cost in economics, you divide total fixed costs by the quantity of output produced. This gives you the average fixed cost per unit of output.
False, it is the fixed cost which is not increased or decreased with proportion to output.
Varable cost and fixed cost
What is the relation ship between total fixed cost and output?
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the fixed cost per unit of output.
To calculate average fixed cost in economics, you divide total fixed costs by the quantity of output produced. This gives you the average fixed cost per unit of output.
Efficiency is the ratio of useful energy output to total energy input. A higher efficiency indicates that a greater proportion of the total energy input is being converted into useful energy output. Therefore, as efficiency increases, the amount of useful energy output relative to total energy output also increases.
False, it is the fixed cost which is not increased or decreased with proportion to output.
Watts measure the rate at which energy is generated or consumed per second. Energy output is the total amount of energy produced or consumed over a period of time. The relationship is that the total energy output is equal to the power (in watts) multiplied by the time duration.
Varable cost and fixed cost
To find the average fixed cost in a business, you divide the total fixed costs by the quantity of output produced. This calculation helps determine the average cost of producing each unit of output in the business.
The cost curves best tells us the relationship between the marginal cost and average total cost. The average fixed cost (AFC) curve will decline as additional units are produced, and continue to decline.
Output is total output. Productivity is out per man-year.
The average fixed cost in economics is determined by dividing the total fixed costs by the quantity of output produced. This calculation helps businesses understand the cost per unit of production that remains constant regardless of the level of output.
average fixed will go down, average variable will remain the same, and average total will go down.