Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Reflection paper/Reflection essay
27/08/2022
Key Components:
In order to understand why the ATC i.e. the Average Total Cost Curve in U-shaped, we need to look at its key components.
Total Cost = Total Variable Cost + Total Fixed Cost
TC = TVC + TFC
Definitions:
Variable Cost refers to those costs which increase along with an increase in output. Example: Raw Materials, Labour i.e. if you want to produce more then you need more raw materials and labour.
Fixed Costs refer to those costs which do not change along with an increase in output.Example: Rent of Factory i.e. irrespective of how much you produce, the rent will stay the same.
Therefore:
Total Cost/Output = Total Variable Cost/Output + Total Fixed Cost/Output
Hence we get:
ATC= Average Fixed Costs(AFC) + Average Variable Costs(AVC)
Lets look at the Graph:
X-axis: Output
Y-Axis: Costs
graph{x^2 + 4 [-32.48, 32.46, -16.24, 16.24]}
Explanation:
As Output increases the total variable costs increases and hence the AVC is also increasing , BUT the total fixed costs remains the same, hence the AFC is falling.
Since the ATC = AFC+ AVC and one component is falling and the other is rising, the direction in which ATC moves will depend on which component is more dominant.
The downward slopping portion of the U-Shaped curve corresonds to the part where AFC is dominant and hence ATC is falling but eventually AVC becomes dominant and ATC starts to rise.
Show more
Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more