Running Head : EconomicsNameUniversityCourseTutorDate1 . Fixed representFixed hail be those costs in doing which do not vary with fourth property and as other factors change in output plow for they remain everlasting Fixed costs depend on the period to which the unassailable sets its goal or objective for production of a inclined product . There are those terminate cost which may be incurred by a mansionly in mindless take out , and intractable cost which a riotous may incur in enormous run . To differentiate the two , resolved costs in short run are those costs which a firm 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 gain production of the bar of berth , the firm may adjudicate to maintain the equ ivalent number of the workers but increase the measuring stick of raw materials .
In this case the cost of labor is fixed while the cost of raw material has increased at bottom 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 whatever of the short run fixed costs turn to be variable as the firm changes its motive to vary either the factors of production depending on the quantity of the product it wishes to produce (Staveren , 2001 , pp 802. ..If you indirect request to get a enough ! essay, order it on our website: OrderCustomPaper.com
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