variable costs

Variable Cost

A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost. On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. This is a variable cost.

variable costs

any COSTS that tend to vary directly with the level of output. They represent payments made for the use of variable factor-inputs, notably raw materials and direct labour.

A firm will leave a market if in the short run it cannot earn sufficient SALES REVENUE to cover its total variable cost. If it can generate enough total revenue to cover total variable cost and make some CONTRIBUTION towards total FIXED COST then it will continue to produce in the short run even though it is still making a loss.

Fig. 195 Variable costs.

variable costs

any COSTS that tend to vary directly with the level of output. They represent payments made for the use of VARIABLE FACTOR INPUTS (raw materials, labour, etc.).

The SHORT-RUN total variable cost curve (TC) in Fig. 195 (a) has an S shape because at low levels of output total variable costs rise slowly (because of the influence of increasing RETURNS TO THE VARIABLE FACTOR INPUTS), while at high levels of output total variable costs rise more rapidly (because of the influence of DIMINISHING RETURNS to the variable input). Average variable costs (AVC in Fig%. 195) fall at first (reflecting increasing returns to the variable input), but then rise (reflecting diminishing returns to the variable input).

In the THEORY OF MARKETS, a firm will leave a market if in the short run it cannot earn sufficient TOTAL REVENUE to cover its total variable cost. If it can generate enough total revenue to cover total variable cost and make some CONTRIBUTION towards total FIXED COST, then it will continue to produce in the short run even though it is still making a loss. See also MARKET EXIT, LOSS MINIMIZATION.

单词	variable costs
释义	variable costs variable costs [′ver·ē·ə·bəl ′kȯsts] (industrial engineering) Costs which vary directly with the number of units produced; direct labor and material are examples. MedicalSeevariable variable costs Variable Cost A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost. On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. This is a variable cost. variable costs any COSTS that tend to vary directly with the level of output. They represent payments made for the use of variable factor-inputs, notably raw materials and direct labour. A firm will leave a market if in the short run it cannot earn sufficient SALES REVENUE to cover its total variable cost. If it can generate enough total revenue to cover total variable cost and make some CONTRIBUTION towards total FIXED COST then it will continue to produce in the short run even though it is still making a loss. Fig. 195 Variable costs. variable costs any COSTS that tend to vary directly with the level of output. They represent payments made for the use of VARIABLE FACTOR INPUTS (raw materials, labour, etc.). The SHORT-RUN total variable cost curve (TC) in Fig. 195 (a) has an S shape because at low levels of output total variable costs rise slowly (because of the influence of increasing RETURNS TO THE VARIABLE FACTOR INPUTS), while at high levels of output total variable costs rise more rapidly (because of the influence of DIMINISHING RETURNS to the variable input). Average variable costs (AVC in Fig%. 195) fall at first (reflecting increasing returns to the variable input), but then rise (reflecting diminishing returns to the variable input). In the THEORY OF MARKETS, a firm will leave a market if in the short run it cannot earn sufficient TOTAL REVENUE to cover its total variable cost. If it can generate enough total revenue to cover total variable cost and make some CONTRIBUTION towards total FIXED COST, then it will continue to produce in the short run even though it is still making a loss. See also MARKET EXIT, LOSS MINIMIZATION.
随便看	what is biting us? what is biting you what is biting you? what is causing this hold-up? what is cracked up to be what is doing? what is done is done what is driving at what is driving at? what is eating what is eating? what is eating her what is eating her? what is eating him what is eating him? what is eating me what is eating me? what is eating someone what is eating someone? what is eating them what is eating them? what is eating us what is eating us? what is eating you what is eating you?