Costs of production Completed 222 group Plujnikova O Sultanova N Sarsembaeva

Содержание

1. Costs of production Completed 222 group Plujnikova O Sultanova N Sarsembaeva
2. Fixed and variable costsTotal fixed costsTotal variable
3. Fixed and variable costsFixed costs are those
4. Total fixed costsGiven that total fixed costs (TFC) are
5. Total costsThe total cost (TC) curve is found by
6. Average fixed costsAverage fixed costs are found
7. Average variable costs are found by dividing
8. Marginal costsMarginal cost is the cost of
9. The significance of marginal costThe marginal cost
10. Areas for total costsTotal Fixed costs and
11. Sunk costsSunk costs are those that cannot be
12. Literaturehttp://www.economicsonline.co.uk/Business_economics/Costs.htmlhttps://www.investopedia.com/terms/p/production-cost.asphttps://www.accountingcoach.com/blog/what-are-production-costshttps://www.readyratios.com/reference/accounting/production_cost.htmlV. Halperin, S. Ignatiev, V. Morgunov. Microeconomics:
13. Thanks for attention
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Fixed and variable costsTotal fixed costsTotal variable costsTotal costsAverage fixed costsAverage variable costsMarginal costsThe significance of marginal costAreas for total costsSunk costsPLAN

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Costs of production Completed 222 group Plujnikova O Sultanova N Sarsembaeva

Слайды и текст этой презентации

Слайд 1Costs of production
Completed 222 group
Plujnikova O
Sultanova N
Sarsembaeva L
Khamraeva K
Rakhimova D

Слайд 2Fixed and variable costs
Total fixed costs
Total variable costs
Total costs
Average fixed

costs
Average variable costs
Marginal costs
The significance of marginal cost
Areas for total

costs
Sunk costs

PLAN

Fixed and variable costsTotal fixed costsTotal variable costsTotal costsAverage fixed costsAverage variable costsMarginal costsThe significance of marginal

Слайд 3Fixed and variable costs
Fixed costs are those that do not

vary with output and typically include rents, insurance, depreciation, set-up

costs, and normal profit. They are also called overheads.
Variable costs are costs that do vary with output, and they are also called direct costs. Examples of typical variable costs include fuel, raw materials, and some labour costs.

Fixed and variable costsFixed costs are those that do not vary with output and typically include rents,

Слайд 4Total fixed costs
Given that total fixed costs (TFC) are constant as output

increases, the curve is a horizontal line on the cost

graph.

Total variable costs
The total variable cost (TVC) curve slopes up at an accelerating rate, reflecting the law of diminishing marginal returns.

Total fixed costsGiven that total fixed costs (TFC) are constant as output increases, the curve is a horizontal line

Слайд 5Total costs
The total cost (TC) curve is found by adding total fixed

and total variable costs. Its position reflects the amount of

fixed costs, and its gradient reflects variable costs.

Total costsThe total cost (TC) curve is found by adding total fixed and total variable costs. Its position reflects

Слайд 6Average fixed costs
Average fixed costs are found by dividing total

fixed costs by output. As fixed cost is divided by

an increasing output, average fixed costs will continue to fall. The average fixed cost (AFC) curve will slope down continuously, from left to right.

Average fixed costsAverage fixed costs are found by dividing total fixed costs by output. As fixed cost

Слайд 7
Average variable costs are found by dividing total fixed variable

costs by output.

The average variable cost (AVC) curve will at

first slope down from left to right, then reach a minimum point, and rise again.
AVC is ‘U’ shaped because of the principle of variable Proportions, which explains the three phases of the curve:
Increasing returns to the variable factors, which cause average costs to fall, followed by:
Constant returns, followed by:
Diminishing returns, which cause costs to rise.

Average variable costs are found by dividing total fixed variable costs by output.The average variable cost (AVC)

Слайд 8Marginal costs
Marginal cost is the cost of producing one extra

unit of output. It can be found by calculating the

change in total cost when output is increased by one unit.
It is important to note that marginal cost is derived solely from variable costs, and not fixed costs.

The marginal cost curve falls briefly at first, then rises. Marginal costs are derived from variable costs and are subject to the principle of variable proportions.

Marginal costsMarginal cost is the cost of producing one extra unit of output. It can be found

Слайд 9The significance of marginal cost
The marginal cost curve is significant

in the theory of the firm for two reasons:

It is

the leading cost curve, because changes in total and average costs are derived from changes in marginal cost.

The lowest price a firm is prepared to supply at is the price that just covers marginal cost.

The significance of marginal costThe marginal cost curve is significant in the theory of the firm for

Слайд 10Areas for total costs
Total Fixed costs and Total Variable costs

are the respective areas under the Average Fixed and Average

Variable cost curves.

Areas for total costsTotal Fixed costs and Total Variable costs are the respective areas under the Average

Слайд 11Sunk costs
Sunk costs are those that cannot be recovered if a

firm goes out of business. Examples of sunk costs include

spending on advertising and marketing, specialist machines that have no scrap value, and stocks which cannot be sold off.
Sunk costs are a considerable barrier to entry and exit.