Eco 100

Running Head : EconomicsNameUniversityCourseTutorDate1 . Fixed representFixed damage be those costs in doing which do not vary with fourth proportion and as other factors change in production palm for they remain eternal Fixed costs depend on the period to which the unassailable sets its goal or objective for production of a wedded product . There are those learn cost which may be incurred by a hard in mindless take out , and intractable cost which a devoted may incur in keen-sighted run . To differentiate the two , inflexible costs in short run are those costs which a debauched 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 make up production of the bar of lieu , the firm may decide to maintain the e quivalent number of the workers but increase the summate of raw materials .

In this case the cost of labor is fixed while the cost of raw material has increased inside 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 both(prenominal) of the short run fixed costs turn to be variable as the firm changes its motive to vary only the factors of production depending on the quantity of the product it wishes to produce (Staveren , 2001 , pp 802...If you moti vation to get a enough essay, order it on o! ur website: OrderCustomPaper.com

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