Differentiate between Fixed and Variable Costs?

Q: How does a cost behave in response to a change in activity? Give an example?

A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: Explain the relation between average variable cost and marginal cost for both the short-run and…

A: Cost Curves show the relation between the costs that a firm incur in the process of production and…

Q: What happens to the average fixed cost, when the output of a firm increases.

A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…

Q: What is the difference between sunk cost and fixed cost? Explain with examples.

A: Sunk costs and fixed costs are two kinds of expenses borne by a corporation in the different…

Q: Why can the distinction between fixed costs and variable costs be made in the short run?

A: Understanding the difference between fixed costs and variable costs is important for settling on…

Q: a. Explain the following statement : "Surely, as you begin this course, you recognize that time is…

A: "Surely, as you begin this course, you recognize that time is one of the scarcest resources of all.…

Q: What is the relationship between the Average Fixed Cost (AFC) curve and the Marginal Cost (MC)…

A: * ANSWER :-  * The OPTION A (There is no relationship between fixed costs and marginal costs) is…

Q: Describe marginal cost in your own words.

A: Cost accounting is a method of financial management that examines a business's variable and fixed…

Q: If the marginal cost is increasing does this tell you whether the average variable cost is…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: Show me how to arrive at Average Variable Cost?

A: Total variable cost varies with the level of production.

Q: Average cost curves (except for average fixed cost) tends to be u-shaped , decreasing and then…

A: Marginal cost is nothing but the additional cost required to produce one extra unit while average…

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: Solve the attahment.

A: There are different concepts of costs in the production process such as total cost, marginal cost,…

Q: f marginal cost is decreasing, what is happening to an average variable cost (decreasing,…

A: the marginal cost refers to the change in the total cost that arises when the quantity produced is…

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: Suppose, Home Style is a well-known furniture manufacturer in the Sultanate. To meet the increasing…

A: The key motive of the firms operating in a market is to earn profits from the sale of goods and…

Q: What will happen to the average total cost if the average variable cost is falling? a. Rises B.…

A: The average Total cost if the the average variable cost is falling is also falling.

Q: Suppose that you and your roommate have started a Doughnut delivery service on campus. List some of…

A: Total Fixed Cost (TFC) : It refers to that part of the total cost that does not depend on output. In…

Q: discuss more about fixed and variable costs.

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: Mr. Ali decided to buy some sandwich and burger for his family. As he found the price of sandwich is…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…