Firm costs. Production costs and profits Production costs in the long run presentation

Questions:
1. Economic costs. External and
internal costs. Normal profit as
cost element
2. Production costs in the short term
period
3. Marginal cost
4. The law of diminishing returns
5. Production costs in the long term
period. Economies of scale

1. Economic costs. External and internal costs. Normal profit as a cost element

Production costs are costs
related to attracting economic
resources needed to create
material goods and services.
The nature of the costs is determined by two
key provisions:
any resource is limited;
every kind of resource used in
production, has at least two alternative
method of application.

To satisfy all the diversity
needs of economic resources never
is enough (which causes
the problem of choice in economics). Any solution
on their use in the production of this or
other good is associated with the need to refuse
production of some other goods and services.
Remembering the production curve
opportunities, you can be sure that it
a vivid embodiment of this concept.

The costs in the economy are associated with the rejection of
production of alternative goods. In connection with
this is all the cost in economics
accepted as alternative (or
imputed).
This means that the cost of any resource
involved in material production,
is determined by its cost at the best of
all possible use cases
a given factor of production. In this regard
economic costs are interpreted as follows
way:

Alternative or economic (imputed)
costs are costs associated with
use of economic resources in
production of this product, assessed in terms of
lost opportunity to use the same
resources for other purposes.
From an entrepreneur's point of view, economic
costs - payments that the firm makes
resource provider to divert those resources away from
use in alternative industries.
The payments a firm carries out of pocket can
be external and internal.

In this regard, we can talk about external (explicit,
or monetary) and internal (implicit, or
implicit) costs.
External costs are payments for resources
suppliers other than
owners of this company. For example, salary
salary of hired personnel, payment for raw materials, energy,
materials and components provided
third party providers, etc.
The firm may use certain
resources owned by herself. And here follows
talk about internal costs.

Internal costs are the costs of
own, by yourself
used resource. Internal
costs are equal to cash payments,
which could be obtained
an entrepreneur for his own resources
at the best of all alternative
options for their use. This is about
some income from which
the entrepreneur is forced to refuse,
organizing your business.

The entrepreneur does not receive this income,
since he does not sell his
resources, but uses them for their own needs.
By creating your own business,
the entrepreneur is forced to give up
wages that he could
get in the case of employment, if not
worked in his own company or from
interest on his capital,
which he could get in credit
sphere, if I had not invested these funds in
their own business.

Normal profit - minimum volume
income existing in this industry, in this
time and which can keep the entrepreneur in
within his business. Normal profit follows
be regarded as payment for such a factor
production as an entrepreneurial ability.
The sum of internal and external costs in
aggregate represents economic
costs. The concept of "economic costs"
is generally accepted, but in practice, when
accounting at the enterprise, are calculated
only external costs that have one more
title - accounting costs.

Since accounting does not
internal costs are taken into account, then
accounting (financial) profit
will be the difference between
gross income (revenue) of the company and its
external costs, while
economic profit - difference
between the gross income (revenue) of the company
and its economic costs (the sum
both external and internal costs).

2. Production costs in the short run

The value of production costs depends on
the value of the cost of economic resources.
Somewhat conventionally, all the resources used in
production, can be divided into two large
groups:
resources that can be changed
very fast (e.g. raw material costs,
materials, energy, labor recruitment, etc.);
resources, change the amount of use
which is possible only for enough
long period of time (construction
new production facility).

Based on these circumstances, the analysis
costs are usually carried out in two
time intervals:
in the short term (when
the amount of some resource remains
constant, but production volumes
can be changed by applying
more or less such
resources such as labor, raw materials, materials, etc.)
and in the long run (when it is possible
change the amount of any resource,
used in production).

The difference between short-term and long-term
periods exactly corresponds to the difference between
constant and variable factors of production.
Variable factors of production - factors
production, the number of which can be changed in
within a short-term period (for example, the number
hired workers).
Constant factors of production - factors
costs for which are set and cannot be changed in
within a short-term period (for example,
production capacity). Thus, in
in the short term, the entrepreneur uses both
constant and variable factors of production.
In the long run, all factors of production
are variable in nature.

In the short term, there are:
fixed costs (TFC) value
which does not depend on the volume of
products (depreciation,
bank loan interest, rental
payment, maintenance of the administrative apparatus and
etc.).

constant factors of production. The quantity
these costs are not related to production volumes.
Fixed costs exist even then
when production activities are
the enterprise is suspended, and the volume
of manufactured products is zero.
The enterprise can avoid these costs by
only by completely ceasing their activities;

variable costs (TVC), the value of which
varies with changes in volume
production (costs of raw materials, materials, fuel,
energy, wages of workers, etc.).
This refers to the cost of resources related to
variable factors of production.
With the expansion of production, variable costs
will increase as the firm needs more
raw materials, materials, workers, etc.
If the firm stops production and volume
release (Qx) reaches zero, then
variable costs will be reduced to almost zero, while
time as fixed costs remain
unchanged.

The difference between permanent and
variable costs is essential for
every businessman: variables
he can manage costs,
fixed costs - out of control
administration and must be paid
regardless of production volumes, even
if production is suspended.

Fig. 1. Dynamics of fixed and variable costs

In addition to fixed and variable costs in
in the short term, another type is distinguished
costs - gross (total, total,
general). Gross Costs (TC) - amount
fixed and variable costs, calculated
for each given production volume:
TC = TFC + TVC
Since the TFCs are equal to some constant
(constant), the dynamics of gross costs will be
depend on the behavior of TVC, that is, it will
determined by the action of the law of decreasing
marginal performance.

Fig. 2. Fixed, variable and gross costs

In addition to gross costs, an entrepreneur is interested in
costs per unit of production, since it is theirs that he will
compare with the price of the product to get an idea of
profitability of the firm. Unit costs
produced products are called average. This group
costs include:
average fixed costs (AFC) - fixed
unit costs:
AFC = TFC / Qx
average variable costs (AVC) - variable
costs per unit of production:
AVC = TVC / Qx
average total (total, gross, total) costs
(ATC) - total costs per unit of production:

Rice. 3. Curves of average costs

Rice. 4. Average and marginal costs

3. Marginal cost

For the manufacturer, it is of no small importance as
the costs of the firm change with the release
additional unit of production. Define
this can be done using the limit
costs.
Marginal cost (MC) -
additional costs spent on
production of each subsequent
(additional) unit of production:
MC = ΔTC / ΔQx

It should be borne in mind that the limiting
costs are highly variable
costs, therefore, on the MC curve (Fig. 4), one distinguishes
two segments: segment with negative and segment with
positive dynamics, which is also explained by
the existence of the law of decreasing limit
recoil. The next feature of the chart
marginal cost (MC) is that it
intersects the plots of mean variables and
average total costs at their lowest points (A and
IN).

Cost reduction is one of the
critical sources of increasing
the competitiveness of any enterprise. After all
at current market prices for products
lower costs mean additional
profit, and therefore prosperity for anyone
manufacturer. When changing for any
cost reasons cost charts
shifted. In case of cost reduction
the corresponding graphs are shifted downwards, when
increasing costs, the graphs move up along
axis of ordinates.

4. The law of diminishing returns

According to the law of diminishing returns,
from a certain point
sequential connection of units
variable resource (for example, labor) to
immutable (fixed) resource
(capital or land) gives diminishing
additional, or limiting, product in
calculation for each subsequent unit
variable resource.

In other words, the growth in the volume of production will be
slower and slower as
more workers will be involved in
production. Marginal product (MP), and together
with it the marginal income (МR), begins to decrease
because the workers hired later turned out to be
less qualified, but because
a relatively large number are employed while
the same amount of available capital funds.

5. Production costs in the long run. Economies of scale

The long-term period is the period
time long enough to
the company could manage to change the number of all
resources used, both permanent and
variables, including the size of the enterprise. IN
this period, all resources are
variables. Thus, short-term
period is a period
fixed capacities, and long-term
period - the period of changing capacities.

The positive effect arises in the fact
the case when as the size grows
of the enterprise there is a decrease in the average
costs due to:
1) a higher level of labor specialization
workers and management personnel;
2) the possibility of using more
productive equipment;
3) more complete disposal of waste by
production of by-products. All this
assists in obtaining external or
internal economies of scale
production.

Negative economies of scale
arises when, as
growth of the size of the enterprise
there is an increase in average costs for
control complexity score
large-scale production.
Instead of saving, there are quite
significant losses or losses.

In the long term, there is
a situation where constant long-term averages
costs generate a constant return on growth
scale of production. With unchanged
economies of scale, the size of the firm's activities is not
affects the productivity of the factors used.
Average and marginal performance
factors of production of the firm remains
unchanged for both large and small
enterprises. With the same scale effect
instead of one plant using
certain production technology,
you can build two factories producing twice

Economy

Fixed and variable costs, sunk costs. The main sources of business financing. Stocks, bonds and other securities. Banking system. Financial institutions. Types, causes and consequences of inflation.

Rukavishnikova M.V., teacher of history and social studies. Social Studies Grade 10 Basic Level

Fixed and variable costs.

Production costs and economic costs.

Internal and external.

Constants and Variables.

Profit concept.

Economic profit.

Accounting profit.

Features of calculating the value of costs and profits.

Accounting method.

The economic method.

Production costs- These are the costs of the manufacturer (owner of the company) for the acquisition and use of production factors.

Economic costs- these are the payments that the firm must make to the suppliers of the necessary resources (labor, material, energy, etc.) in order to divert these resources from use in other industries.

Economic costs

Internal (implicit)

Permanent

Variables

Internal (or implicit)- the cost of one's own resource - equal to the monetary payments that could be received for an independently used resource if its owner invested it in someone else's business - unpaid expenses for using one's own resources. The resources are owned by the company and used for its own needs. Have the form of "lost income" (for example: office and warehouse space) - rent (alternative use) would give a profit in monetary terms.

External (explicit, accounting)- payments to suppliers of labor resources, raw materials, fuel, services, etc. - The amount of cash payments that the company makes to pay for the necessary resources ( wages, purchase of raw materials and supplies, transportation costs) are calculated on the basis of financial statements-accounting.

Fixed costs- that part of the total costs that does not depend at a given time on the volume of products ( company rent for premises, building maintenance costs, training and retraining costs, management salaries, utility costs, depreciation ). Occur when production has not yet begun, because there must be a building, cars, etc. Financed even when the business is shut down.

Variable costs- that part of the total costs, the value of which for a given period of time is directly dependent on the volume of production and sales of products ( purchase of raw materials, wages, energy, fuel, transport services, costs of containers and packaging, etc. . ). if the products are not produced, they are equal to zero.

Profit

Economic profit- this is the difference between the total revenue of the firm and economic costs.

Economic profit orients the entrepreneur not just to generate income, but to compare this income with that which could be obtained as a result of the alternative use of available resources.

Accounting profit is the difference between total revenue and accounting costs.

Different understanding of the profit of the company by economists and accountants leads to different conclusions about the state of affairs in the enterprise.

To calculate the actual value of costs and benefits, you should use the accounting method. For making decisions on the choice of one of the alternative options for investing resources, only the economic method of calculating costs is acceptable.

Money- This is a special product that plays the role of a universal equivalent in the exchange of goods. It expresses the value of all goods, is an intermediary in their exchange.

The main functions of money (essence of money):

measure of value- express the price - the monetary form of the value of the goods;
medium of circulation- act as a fleeting intermediary in the acts of purchase and sale of goods;
store of value- money withdrawn from circulation is used as a store of value ( gold, securities, real estate, currency, etc.)
instrument of payment- are used to pay off various obligations ( remuneration of labor, payment of taxes, etc.);
world money - used for settlements in the world market ( gold, dollar, euro, pound sterling, yen, ruble) as a universal means of payment and purchase, and also as a universal materialization of wealth.

Cash funds(paper money and small change) - a form of monetary payments and settlements, in which banknotes are physically transferred from buyer to seller when paying for goods or when making other payments.

Non-cash funds(credit money, check, bill of exchange, banknotes, electronic money) - a form of making monetary payments and settlements, in which there is no physical transfer of banknotes, but records are made in special documents

credit money- these are debt obligations, the appearance of which is associated with the development of credit relations;
check- a written order of the person who has a current account on the payment by the bank of the amount of money or its transfer to another account;
bill of exchange- a written promissory note, which indicates the amount of the monetary amount and the timing of its payment by the debtor; It is in circulation as money.
banknotes- bank notes - banknotes issued into circulation by central issuing banks. They differ from paper money in that: they have double collateral - credit (commercial promissory note) and metal (gold reserves of the bank); issued not by the state, but by the central issuing bank; perform the function of a means of payment.
electronic money is a system of non-cash payments made through the use of electronic technology, covering banks, retail outlets, consumer services, etc. Smart cards have appeared, which are an electronic checkbook

The financial market consists of a number of sectors

Credit market... This is an economic space where relations are organized, conditioned by the movement of free money between borrowers and lenders on terms of repayment and payment ( Central bank - commercial bank, commercial banks, banks and individuals and legal entities, Russian and foreign banks).
Currency market... The system of economic relations between banks, as well as between banks and their clients regarding the purchase and sale of foreign currency.
Securities market (stock market)... The market where the issue (issue) and purchase and sale of securities, stocks, bonds and securities derivatives from them is carried out.
Insurance and pension products market... This is a special system for organizing insurance relations, in which there is a purchase and sale of insurance services as a commodity, supply and demand for them are formed. The insurer and the policyholder regulate insurance economic relations with a special contract - a policy.
Investment market (investment market). This is a set of economic relations that develop between sellers and buyers of investment goods and services. The goods are objects of investment activity ( real estate, new construction, artistic values, precious metals and products, deposits, government obligations).

Stock Exchange is an organized market in which transactions with securities and other financial instruments are carried out and whose activities are controlled by the state.

Stock exchange functions

Mobilization of funds for long-term investment in the economy and financing of government programs.
Realization of sale and purchase of shares, bonds of joint stock companies, government bonds and other securities.
Establishment of the course of securities traded on the stock exchange during trading.
Dissemination of information on quotations of securities and on the state of the financial market as a whole.

Bank(it. bench) is a financial organization that has concentrated the temporarily free funds of enterprises and citizens for the purpose of their subsequent lending or on credit for a certain fee.

Bank functions

acceptance and storage of deposits (money or securities deposited with the bank) of depositors;
issuing funds from accounts and performing settlements between clients;
placement of collected funds by issuing loans or providing loans;
buying and selling securities, currencies;
regulation of money circulation in the country, including the issue (emission) of new money (function of the Central Bank only).

Central State Bank- conducts state policy in the field of emission, credit, money circulation. The main credit institution of the country is owned by the Russian Federation. Acts on the basis of the law of the Russian Federation.

Commercial banks- carry out financial and credit operations on a commercial basis.

According to the form of ownership, they are divided into state, municipal, private, joint-stock, mixed.
On a territorial basis, they are divided into local, regional, national and international.

Functions of the Central Bank

The emission center of the country (only he has the right to issue money, banknotes).
Regulates the economy through the conduct of monetary policy.
Concentrates the minimum reserves of commercial banks, which gives him the ability to control their activities.
He is the banker of the government (he gives all profits in excess of certain norms to the treasury and is an intermediary in all payments, therefore he occupies the main position in the banking system of the country).

The main instruments of the state monetary policy

Open market operations(government loan)
Discount rate policy
Change in the required reserves ratio

Internal. External.
Internal.
External.

Internal sources of funding.

Profit of the firm. Depreciation.
Profit of the firm.
Depreciation.

Bank loan. Conversion of a sole proprietorship into a partnership. Conversion of the partnership into a CJSC. Using funds from various funds to support small businesses.
Bank loan.
Conversion of a sole proprietorship into a partnership.
Conversion of the partnership into a CJSC.
Using funds from various funds to support small businesses.

All sources of financing in business can be divided into internal and external.

– sources that the company itself has. This is the firm's profit + depreciation charges.
External - bank loans + funds from various financial institutions and investment companies, pension funds + state and regional funds to support small businesses.

Internal sources of funding

Profit- the main internal source of financing for the company.

Profit of the firm- this is the difference between income and its costs or the cost of the product.

The amount of profit depends

From the prices of goods .
From unit costs .
From the volume of product sales .

Gross or total profit- the difference between the income and the cost of the product. Part of it goes to pay taxes, possibly, will be paid to the bank in the form of interest.

Residual or net income- the amount remaining after deducting the payments listed from the gross profit.

Depreciation (from Lat.amortisatio - repayment) –1) the depreciation of fixed assets calculated in monetary terms in the process of their application, production use.

2) It is at the same time a means, a way of transferring the value of worn-out means of labor to the product produced with their help.

3) the institution of compensation for the depreciation of fixed assets is depreciation deductions in the form of money allocated for repair or construction, the manufacture of new fixed assets.

Sinking fund- monetary funds intended for reproduction, recreation of worn-out fixed assets. The amount of ready-made depreciation deductions of an enterprise or organization is determined as a share of the initial cost of objects representing fixed assets. The normative value of this share is called the depreciation rate.

External sources of funding

Other firms.
Sale of shares
Banks
Credit
Trade(or commodity) credit

State

The state allocates funds to public sector enterprises in the form direct capital investment .
The state can also provide firms with its funds in the form subsidies .
The main difference between government financing and bank loans is that the company receives funds from the government free of charge and irrevocably. This means that the firm does not have to return the amount received from the state, and does not have to pay interest on it.
Government order .

Homework

§ 12, test, notes in a notebook. Block "Financial Institutions" complex plan

Slide 1

CONSTANT AND VARIABLE COSTS
Social Studies Grade 11 Basic Level
Social Science Codifier Chapter 2. Economics. Topic 2.5
The presentation was prepared by Olga Ulyeva, teacher of history and social studies, GBOU School number 1353

Slide 2

FIRM (enterprise) - a commercial organization that acquires economic resources for the production and sale of goods and services in order to make a profit. Firms are engaged in collective (organized) entrepreneurship.
ENTERPRISE - an economic agent that owns property, produces goods and services, has income and expenses.
COLLECTIVE (LLC, JSC)
INDIVIDUAL (PPI, unincorporated business)

Slide 3

The firm is a LEGAL PERSON. SIGNS: must have constituent documents (usually a charter), location and executive body. has separate property (limited property liability, unlike individual entrepreneurs) is responsible for its obligations with this property has property rights and obligations can be a plaintiff and defendant in court (as well as an individual) has an independent balance (estimate) and its own current account
ENTITY

Slide 4

FIRM ECONOMY
THE MAIN FUNCTION OF THE COMPANY is to produce goods and services to meet the demand of consumers. PRODUCTION FACTORS - resources required for the production of goods and services:
LABOR is an expedient human activity to create economic benefits. CAPITAL (investment resources) - all benefits created by the past labor of a person, used for business. The capital also includes raw materials (oil, gas, timber, etc.). LAND - all agricultural and urban land that is used for agricultural or industrial development. INFORMATION - any information necessary for the organization and conduct of production. MANAGEMENT (entrepreneurial) ability - the ability of an employee to use his knowledge to make the best decision in the given circumstances.

Slide 5

PRODUCTION COSTS -
the costs of the manufacturer (owner of the company) for the acquisition and use of factors of production.
In what case will the firm's activities be profitable?

REVENUE FROM SALES OF PRODUCTS
COSTS FROM THE PURCHASE AND USE OF PRODUCTION FACTORS
REVENUE FROM SALES OF PRODUCTS
COSTS FROM THE PURCHASE AND USE OF PRODUCTION FACTORS
PROFIT

Slide 6

PLACE OF PROFIT IN THE STRUCTURE OF THE VALUE OF GOODS
VALUE OF GOODS (REVENUE)
COST RATE
PRICE LEVEL
the amount of social labor and time required to produce a given commodity. Consists of the value of constant capital, the value of variable capital of surplus value.
the amount of money in exchange for which the seller is willing to transfer (sell) a unit of goods. In essence, the price is the coefficient of exchange of a particular commodity for money.
COST OF GOODS -
THE PRICE OF THE PRODUCT -

Slide 7

Slide 8

ECONOMIC AND ACCOUNTING COSTS
ECONOMIST AND ACCOUNTANT CONSIDER PROFIT DIFFERENTLY

Accounting costs - the value of expended resources in the actual prices of their acquisition Economic costs - as the value of other goods that could be obtained with the most profitable of all possible alternative directions of using the same resources

Accounting profit is the difference between the gross income (revenue) of the firm and its explicit costs. This profit is indicated in the financial documents of the company. Economic profit is the difference between gross income and the economic costs of a firm. This income, received in excess of normal profit, shows the entrepreneur's interest in this direction of the firm. 1. Cost concept

Calculation of accounting and economic profit (thousand rubles) Accounting calculation Economic calculation 1. Revenue 2. Explicit costs Including: a) raw materials and materials b) fuel and energy c) wages d) interest on borrowed funds (1000) at market interest rate Implicit costs Including: a) the alternative value of the entrepreneur's time b) the alternative value of equity (2000) at the annual interest rate Accounting profit (1-2) 5. Economic (net) profit (1-2-3)

1. The concept of costs According to the economic role in the production process, costs can be divided into: Basic - costs associated directly with the technological process, as well as with the maintenance and operation of tools. Overhead - the cost of maintenance and management of the production process, the sale of finished products.

1. The concept of costs According to the method of allocation of costs for the production of a specific product, there are: Direct - these are costs associated with the manufacture of only this type of product and attributed directly to the cost of this type of product. Indirect costs in the presence of several types of products cannot be attributed directly to any of them and are subject to distribution in an indirect way.

A short-term period is considered to be a period of time when an enterprise cannot change its production capacities, but can change the degree of intensity of utilization of these capacities. Long-term period - a period sufficient to change the volume of all resources employed in production, including production capacity.

Fixed costs (FC) - costs that do not depend on the volume of production. Variable cost (VC) - costs that change with a change in the volume of production. Gross total cost of production (total cost - TC) is equal to the sum of fixed and variable costs: TC = FC + VC. 2. Fixed and variable costs

Average costs (АС - average cost) are calculated by dividing costs by the volume of products produced (Q - quantity) .Thus, you can calculate the average constant (AFC - average fixed cost), average variables (AVC - average variable cost) and average total (ATC - average total cost) costs:,.

Marginal cost and marginal productivity. The shape of the MC curve is a reflection and consequence of the law of diminishing returns. The marginal cost falls as the productivity of each unit of the variable resource increases, and increases as the productivity of each additional unit of the resource decreases. 3. Average and marginal costs

Relationship between average and marginal costs. The marginal and average cost functions are closely related. The MC curve (Fig. 4) intersects the AVC and AC curves at the points of their minimum values (points A and B). 3. Average and marginal costs Fig. 4. Marginal and average costs

Average costs (ATS) of a boiler house for one apartment in a 100-apartment building: One house - TS = RUB, ATS 1 = 500 RUB; Two houses - TS = RUB, ATC 2 = 300 RUB. Three houses - TS = RUB, ATC 2 = 220 RUB. Connecting these houses requires an increase in costs, but the number of apartments is growing to a greater extent; Six houses TS = RUB, ATC 3 = 240 RUB. For this house, the increase in costs is faster than the increase in the number of apartments.

Positive economies of scale: as the size of the enterprise increases, average costs decrease. The positive economies of scale are due to: —the growth of the size of the enterprise increases the possibilities of using specialists in production and management; - at large enterprises, highly productive and expensive equipment can be used; - a large enterprise can develop secondary and auxiliary production, produce products from the waste of the main production. 4. Economies of scale

Negative economies of scale: as the size of the enterprise increases, average costs increase. Negative economies of scale arise: - with a decrease in the efficiency of interaction between the divisions of the firm; - due to a decrease in the quality of control over the implementation of decisions of the company's management; - due to a sharp increase in the cost of transmission and processing of information; - due to possible differences in the interests of the firm's divisions and the general strategy of the firm's development. 4. Economies of scale

Positive and negative economies of scale of production are the factors that determine the structure of each industry. Industries where long-term NPPs reach their minimum with a very large volume of output (LAS 1) - a natural monopoly industry. In industries where economies of scale are small and negative ones emerge quickly, the effective size of the enterprise is determined by the small volume of production (LAC 2) - the industry of perfect competition. 4. Economies of scale

Industries in which the positive economies of scale are exhausted rather quickly, and the negative ones do not come into effect until a significant scale of production is achieved (LAC 3) can include both small and large firms - industries of imperfect competition. 4. Economies of scale Questions and tasks for self-control 1. The total income of the Butter-cheese company is 90 million rubles. in year. Costs for raw materials and supplies are equal to 40 million rubles. The salary of employees is 30 million rubles. The salary of the company's managers (director, chief accountant and chief economist) is 60 thousand rubles. a month to everyone. Normal profit - 12 million rubles. Find the accounting and net income of the firm. The bonus to each manager at the end of the year is equal to 10% of net profit.

Questions and tasks for self-control 2. Suppose a company has made 50 units of products to order at a price of 2800 rubles, and 20 units of products for a store at a price of 3250 rubles. Draw a graph of the firm's total income. How will the slope angle TR be determined? An urgent order was received for 20 units at a price of 2700 rubles, equal to the cost of production. Is this order profitable if the lease of the store costs 7000 rubles, and we can sublease it for 4000 rubles?

3. If AVC decreases as the volume of production increases, then: a) MC should be reduced; b) FC must be reduced; c) TS should be reduced; d) ATC must be lower than AVC; e) MC must be lower than AVC. 4. Which of the following expressions represents the total cost: a); b) VС - FC; c) FC + VC; d) AFC + AVC; e). Questions and tasks for self-control