Purchase Solution

fixed and variable costs

Not what you're looking for?

Ask Custom Question

What's the difference between the short run and the long run? In which case are there fixed and variable costs of production and in which case are there only variable costs?

Purchase this Solution
Solution Summary

Assess fixed and variable costs.

Solution Preview

Short run period is a period of imperfect adjustment to a situation perceived as temporary.

The short run is a period of time when there is at least one fixed factor of production. This is usually fixed capital such as machinery and the amount of factory space available.
(www.tutor2u.net)

Thus in short run, output increases when more units of variable ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Calculate the fixed cost,variable cost & changes in scenario

    A) Total fixed costs for Company A are $250,000. Total costs, both fixed and variable, are $378,000 for Company A when 40,000 units are produced.

  • Relationship between Fixed and Variable Costs

    292880 Relationship between Fixed and Variable Costs Explain the relationship between fixed and variable costs used in a flexible budget. Explain the relationship between fixed and variable costs used in a flexible budget.

  • Managerial Accounting Business Questions

    Explain the difference between direct and indirect costs. Do you agree that all variable costs are direct costs while all fixed costs are indirect costs? 1. Explain the difference between fixed and variable costs.

  • the distinction between fixed costs and variable costs

    112393 Fixed and Variable Costs Why can the distinction between fixed costs and variable costs be made in the short run? Distinction between fixed costs and variable costs can be made in the short run because a change in degree can be made.

  • Mixed Costs in a Service Business vs. a Manufacturing Business

    Mixed costs consist of fixed and variable component of costs, .i.e. mixed costs contain both fixed costs and variable costs.

  • XYZ Corp: Fixed Costs vs. Variable Costs scenarios

    your fixed costs to be higher and your variable costs?

  • CVP Analysis

    Problem 2: Kelley Company and Mason Company each have sales of $200,000 and costs of $140,000. Kelley Company's costs consist of $40,000 fixed and $100,000 variable, while Mason Company's costs consist of $100,000 fixed and $40,000 variable.

  • Fixed and Variable Costs in the Short Run

    166580 Fixed and Variable Costs in the Short Run Distinguish between fixed and variable costs in the short run. Classify the following as fixed or variable costs: a. Advertising expenditures b. Fuel c. Raw material cost d.

  • Fixed Cost Vs. Variable Cost

    One organization (American Airlines) must have high fixed costs and low variable costs, and the other organization (Netflix) must have low fixed costs and high variable costs.

  • Fixed, Variable and Mixed Costs

    143637 Fixed Costs You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed).

View More Related Solutions