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  2. Marginal cost - Wikipedia

    en.wikipedia.org/wiki/Marginal_cost

    Marginal cost is the change of the total cost from an additional output [(n+1)th unit]. Therefore, (refer to "Average cost" labelled picture on the right side of the screen. Average cost. In this case, when the marginal cost of the (n+1)th unit is less than the average cost(n), the average cost (n+1) will get a smaller value than average cost(n).

  3. Long run and short run - Wikipedia

    en.wikipedia.org/wiki/Long_run_and_short_run

    Economists tend to analyse three costs in the short-run: average fixed costs, average variable costs, and average total costs, with respect to marginal costs. The average fixed cost curve is a decreasing function because the level of fixed costs remains constant as the output produced increases.

  4. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Cost-plus pricing is not common in markets that are (nearly) perfectly competitive, for which prices and output are such that marginal cost (the cost of producing an additional unit) equals marginal revenue. In the long run, marginal and average costs (as for cost-plus) tend to converge, reducing the difference between the two strategies.

  5. Generally Accepted Accounting Principles (United States)

    en.wikipedia.org/wiki/Generally_Accepted...

    Generally Accepted Accounting Principles (GAAP) [a] is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC), [1] and is the default accounting standard used by companies based in the United States.

  6. Managerial economics - Wikipedia

    en.wikipedia.org/wiki/Managerial_economics

    Marginal Analysis is considered the one of the chief tools in managerial economics which involves comparison between marginal benefits and marginal costs to come up with optimal variable decisions. Managerial economics uses explanatory variables such as output, price, product quality, advertising, and research and development to maximise net ...

  7. Contribution margin - Wikipedia

    en.wikipedia.org/wiki/Contribution_margin

    In the Cost-Volume-Profit Analysis model, costs are linear in volume. In cost-volume-profit analysis, a form of management accounting, contribution margin—the marginal profit per unit sale—is a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. [2]

  8. Opportunity cost - Wikipedia

    en.wikipedia.org/wiki/Opportunity_cost

    Marginal cost: The increase in cost caused by an additional unit of production is called marginal cost. By definition, marginal cost (MC) is equal to the change in total cost ( TC) divided by the corresponding change in output ( Q): MC(Q) = TC(Q)/ Q or, taking the limit as Q goes to zero, MC(Q) = lim( Q→0) TC(Q)/ Q = dTC/dQ. In theory ...

  9. Theories of taxation - Wikipedia

    en.wikipedia.org/wiki/Theories_of_taxation

    Figure 1: X's demand curve. It's essential to consider whether the Lindahl Pareto tax stands as an optimal equilibrium. A Pareto optimal allocation occurs for a public good when the sum of the marginal rates of substitution (MRS) equals the marginal rate of transformation (MRT). Thus, if this can be shown to hold in a Lindahl equilibrium, it ...