Eco 100

Running Head : EconomicsNameUniversityCourseTutorDate1 . Fixed representFixed price be those costs in doing which do not vary with fourth proportionality and as other factors change in intersection apprehension for they remain regular Fixed costs depend on the period to which the unassailable sets its goal or objective for production of a minded(p) product . There are those settle cost which may be incurred by a securely in mindless take out , and intractable cost which a mansion may incur in coarse run . To differentiate the two , mend costs in short run are those costs which a tight incurs by making one of its factor of production constant as it changes other factors in production of a given make sense of a product . For example , to attach production of the bar of position , the firm may descend to maint ain the equivalent number of the workers but increase the count of raw materials .

In this case the cost of labor is fixed while the cost of raw material has increased at bottom that life duet of producing that specific measuring stick of shoes . On the other croak , fixed costs in the long run are those cost which a firm may incur from few of its fixed assets such as land and rent . In long run some of the short run fixed costs turn to be variable as the firm changes its motive to vary both the factors of production depending on the quantity of the product it wishes to produce (Staveren , 2001 , pp 802...If you neediness to get a enough essay, order! it on our website: OrderCustomPaper.com

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