Econ Extra Credit

. Because there atomic number 18 few sellers in oligopoly, any revision in outturn or price by nonp areil of them is likely to appreciably impact the sales of competing firms. Each of the sellers recognizes this fact, so what each firms should do to maximize its pays depends on what some other firms do, and their choices and policies therefore reflect this mutual interdependence. 2. Fixed be are those exist which do not vary with volume of output and hence fixed are defined in legal injury of time like per day, or per month, or per year. Variable be are those equal that changes directly with the production and hence they are defined in terms of units. Total fixed costs remain same but per unit fixed cost keeps changing while in case of covariant costs total variable costs keeps changing depending on the aim of output but per unit variable cost clay constant. The shape of the Total Variable Cost Curve begins comparatively steep, then flattens, before turning change magnitudely steep once again. Total cost ignore is a curve that graphically represents the relation between total cost incurred by a firm in the short production of a ripe or service and the beat produced. The total cost curve is a cornerstone upon which the analysis of a firms short production is built.

It combines all of a firms opportunity costs into a single curve, which can then be employ with the firms total revenue curve to determine profit while Total Variable cost curve is a curve that graphically represents the relation between total variable cost incurred by a firm in the short production of a good or service and the quantity produced. The marginal cost curve, the focal point for the analysis of short-run production, can be derived directly from the total variable cost curve. The shape of the total variable cost curve reflects increasing marginal returns at small quantities of output and decreasing marginal returns at later quantities. 3. A Fixed stimulant is an input whose quantity cannot be changed in the... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper