A single economic concept Essay Example | Topics and Well Written Essays - 500 words

A single economic concept - Essay ExampleThe process aims at identifying the apostrophizes that the alliance can reduce in the long run or ways that the company can increase its r eventideues in the long run which can marginally increase the element of network for it for a given level of output or even by increasing the level of output. (Investorwords)Whichever cost is sustained by a company can be grouped into two categories which are uncertain costs and stubborn costs. Variable costs change with the increase in the output while the fixed costs are sustained by the entity stay the same whatever be the output, which also includes zero output.When the company has attained the point where its total costs have equaled the total revenue, it has reached the point of break even and each additional product of the company will generate pure advance for which only the versatile costs will be charged and the fixed cost will be spared as the breakeven has already covered them so an incr ease in the level of output can aid in the advantageousness of the company with greater margin of profit.For each unit sold or service offered, the marginal profit of the company is the difference of the revenue and the cost of that particular product. If the revenue for a unit of product is greater than the unit cost of that product then the profit for the unit is positive and vice