Search results
Results from the WOW.Com Content Network
In economics, the marginal cost is the change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity. [1] In some contexts, it refers to an increment of one unit of output, and in others it refers to the rate of change of total cost as output is increased by an infinitesimal amount.
A per unit value out of normal range is worth looking into for potential errors. Manufacturers usually specify the impedance of apparatus in per unit values. Use of the constant is reduced in three-phase calculations. Per-unit quantities are the same on either side of a transformer, independent of voltage level
The input impedance of an infinite line is equal to the characteristic impedance since the transmitted wave is never reflected back from the end. Equivalently: The characteristic impedance of a line is that impedance which, when terminating an arbitrary length of line at its output, produces an input impedance of equal value. This is so because ...
Average variable cost (AVC/SRAVC) (which is a short-run concept) is the variable cost (typically labor cost) per unit of output: SRAVC = wL / Q where w is the wage rate, L is the quantity of labor used, and Q is the quantity of output produced. The SRAVC curve plots the short-run average variable cost against the level of output and is ...
The minimum efficient scale can be computed by equating average cost (AC) with marginal cost (MC): = / = The rationale behind this is that if a firm were to produce a small number of units, its average cost per unit would be high because the bulk of the costs would come from fixed costs. But if the firm produces more units, the average cost ...
Marginal cost (MC) is the change in total cost per unit change in output or ∆C/∆Q. In the short run, production can be varied only by changing the variable input. Thus only variable costs change as output increases: ∆C = ∆VC = ∆(wL). Marginal cost is ∆(Lw)/∆Q. Now, ∆L/∆Q is the reciprocal of the marginal product of labor (∆Q ...
Long-run total cost (LRTC) is the cost function that represents the total cost of production for all goods produced. Long-run average cost (LRAC) is the cost function that represents the average cost per unit of producing some good. Long-run marginal cost (LRMC) is the cost function that represents the cost of producing one more unit of some good.
Take for example a public park, with a constant marginal cost of $15 per acre. This public park will be available to two people, Sarah and Tom. Figure 1: Sarah's marginal willingness to pay. Figure 1 shows Sarah's marginal willingness to pay for a public park. For the first acre of the park, Sarah is willing to pay $20.