Economics For Business

Analysing the difference between personify and profit structure of a harvest-timeCost and Profits atomic number 18 two of the basic concepts in stinting theory and as such most of the economic decisions are base on the concept of cost and profit . A typical cost structure of a product is based on types of cost i .e . implicit cost and translucent cost . An implicit cost is the cost foregone at the time of choosing one alternative over other nevertheless explicit cost is a business expense which john easily be accounted for and identified . Typically , the cost structure of a product is based on explicit cost which is then separated into two cost i .e . changeable cost and fixed costFixed costs are those costs which do not respond to the changes made in the level of railroad siding of a product whereas variable costs vary with the level of production i .e .

if input increases , the variable cost increases in like manner until economies of scale are achieved (Campbell Brue , 2005 . The profit structure of a product comprises of the two elements of revenue and from the the part of the calculating the profit realise on any given product . In to analyze the differences between the two structures , it is therefore critical that the overall costs including explicit as well as implicit costs are taken into considerationThe prescription drug products are complex...If you inadequacy to get a full essay, order it on our website: Ordercustompaper.com

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