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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.
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What is the relationship between total fixed cost and output?
What is the relation ship between total fixed cost and output?
Total variable cost does not increase in proportion to output is it true?
False, it is the fixed cost which is not increased or decreased with proportion to output.
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
Varable cost and fixed cost
Relationship between marginal cost and average total cost?
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.
What effect will an increase in output have on average fixed average variable and average total cost?
average fixed will go down, average variable will remain the same, and average total will go down.
What is the relationship between total fixed cost and output?
What is the relation ship between total fixed cost and output?
What is the relationship between efficiency useful energy output and total energy 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.
What is the relationship between watts and energy 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.
Total variable cost does not increase in proportion to output is it true?
False, it is the fixed cost which is not increased or decreased with proportion to output.
Which of the following costs are included in the cost classification that is based on the relationship between total cost and volume of activity?
Varable cost and fixed cost
Relationship between marginal cost and average total cost?
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.
What is the difference between output and productivity?
Output is total output. Productivity is out per man-year.
What effect will an increase in output have on average fixed average variable and average total cost?
average fixed will go down, average variable will remain the same, and average total will go down.
How calculate fixed cost from total cost and quantity?
Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
What does the vertical distance between the fixed Cost and the total cost curve represent?
total variable cost
A company is producing 500 units of output Its average variable costs are 2.00 and its average fixed costs are 50 What is the total cost?
Total cost = variable cost + fixed cost fixed cost = 50 fixed cost per unit = 50 / 500 = .1 total cost = 2 + .1 = 2.1 per unit
Average total cost is very high when a small amount of output is produced because?
average fixed cost is high
