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If among a nation of hunters, for example, it usually costs twice the labour to kill a beaver which it does to kill a deer, one beaver should naturally exchange for or be worth two deer. Total cost refers to the total expense incurred in reaching a particular level of output; if such total cost is divided by the quantity produced, average or unit cost is obtained. Telephone (fixed line charge plus charge per unit consumed) br / Mixed costs are often separated into fixed and variable components at end of period. Not everyone is affected alike, even when the best of intentions are initially involved. Direct materials, direct labour, cogs, freight costs, fuel br / They are identified on a per-unit basis br / Variable costs stay the same per unit as activity level changes. The production functions for both deer and beaver are linear and homogeneous; that is to say, deer and beaver are available in unlimited supply at prevailing relative cost ratios. There was a hidden cost involved. Introduction, by James Buchanan and Gordon Tullock in The Calculus of Consent The attainment of consent is a costly process, however, and a recognition of this simple fact points directly toward an economic theory of constitutions. The economic theory that may be constructed out of an analysis of individual choice provides an explanation for the emergence of a political constitution from the discussion process conducted by free individuals attempting to formulate generally acceptable rules in their own long-term interest.
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What is Seen and What is Not Seen, by, frdric Bastiat (pronounced bas-tee-AH). Manufacturing overhead: costs that are indirectly associated with the manufacturing of the finished goods. Br / Starts with identification of key activities and their relationships with various costs. Factory utilities br /. Costs and Benefits of preventing crime: Crime, from the Concise Encyclopedia of Economics Economists approach the analysis of crime with one simple assumptionthat criminals are rational people. Economists delight in uncovering those hidden costs and often enjoy a moment of fun by taking the promoter by surprise. What if a change benefits some people but simultaneously harms others? Hicks, biography from the Concise Encyclopedia of Economics Hickss fourth contribution was the idea of the compensation test. For example, if you make an agreement with your roommate that you will do the cooking and hell wash the dishes, you both may have forgotten initially that some of the meals you both like to eat entail. A particular kind of hidden cost is what economists call an unintended consequence. Product Costs costs that are necessary and integral part of producing the finished product.
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Concise Encyclopedia of Economics. Mixed Costs br / Mixed costs are also called semi-variable costs. Br / Fixed cost per unit changes as activity level changes. Manufacturing Costs in Financial Statements br / Format Manufacturing Accounts br / ABC Manufacturing Company br / Manufacturing account for the year ended December 2007 br / Direct Materialsrmrm br / Raw material as. Cost, behaviour Analysis br / Cost behaviour analysis: br / Examines how costs behave when levels of business activity change: br / Some costs change br / Some costs stay the same br / Helps in planning and choosing between alternatives. Free trade in cars, for example, helps millions of American consumers at the expense of thousands of American workers and owners of stock.S. There are no nonlabor inputs (no other negative goods).