CA Foundation Exam > CA Foundation Videos > Business Economics for CA Foundation > Average & Marginal Cost
Average & Marginal Cost Video Lecture | Business Economics for CA Foundation
|
135 videos|190 docs|88 tests
|
FAQs on Average & Marginal Cost Video Lecture - Business Economics for CA Foundation
| 1. What is the average cost in economics? |  |
Ans. Average cost in economics refers to the total cost of production divided by the quantity of output. It represents the cost per unit of production and is calculated by dividing the total cost by the total quantity produced.
| 2. How is average cost different from marginal cost? | |
Ans. Average cost and marginal cost are two different concepts in economics. Average cost is the total cost divided by the quantity of output, representing the cost per unit of production. On the other hand, marginal cost refers to the additional cost incurred by producing one additional unit of output. It represents the change in total cost when the quantity produced changes by one unit.
| 3. How can average cost be minimized? | |
Ans. Average cost can be minimized by achieving economies of scale. This means that as the quantity of production increases, the average cost decreases. This can be achieved through various means such as increasing the efficiency of production, reducing wastage, utilizing resources optimally, and adopting cost-saving measures. By optimizing production processes and achieving economies of scale, firms can minimize their average cost.
| 4. What are the factors that affect average cost? | |
Ans. Several factors can affect average cost in economics. These include the cost of inputs or resources, technology used in production, economies of scale, efficiency of production processes, government regulations, and market conditions. Changes in any of these factors can impact the average cost, either increasing or decreasing it.
| 5. How does average cost impact pricing decisions? | |
Ans. Average cost plays a crucial role in pricing decisions for businesses. Pricing decisions are often influenced by the average cost, as firms need to ensure that the price charged for their products covers the average cost of production. If the price is set below the average cost, the firm would incur losses. On the other hand, if the price is set above the average cost, the firm can generate profits. Therefore, understanding the average cost is essential for determining the optimal pricing strategy.
Related Exams
About this Video
|
4.73/5 Rating |
|
Nov 08, 2024 Last updated |
Video Description: Average & Marginal Cost for CA Foundation 2024 is part of Business Economics for CA Foundation preparation.
The notes and questions for Average & Marginal Cost have been prepared according to the CA Foundation exam syllabus.
Information about Average & Marginal Cost covers all important topics for CA Foundation 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Average & Marginal Cost.
Introduction of Average & Marginal Cost in English is available as part of our Business Economics for CA Foundation for CA Foundation & Average & Marginal Cost in
Hindi for Business Economics for CA Foundation course. Download more important topics related with notes, lectures and mock test series for
CA Foundation Exam by signing up for free.
Description
Video Lecture & Questions for Average & Marginal Cost Video Lecture | Business Economics for CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Business Economics for CA Foundation.
Information about Average & Marginal Cost
Here you can find the meaning of Average & Marginal Cost defined & explained in the simplest way possible.
Besides explaining types of Average & Marginal Cost theory, EduRev gives you an ample number of questions to practice Average & Marginal Cost tests,
examples and also practice CA Foundation tests.
|
135 videos|190 docs|88 tests
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Exam
,Previous Year Questions with Solutions
,ppt
,Free
,video lectures
,Semester Notes
,Extra Questions
,study material
,Sample Paper
,Objective type Questions
,mock tests for examination
,Important questions
,Summary
,Average & Marginal Cost Video Lecture | Business Economics for CA Foundation
,Viva Questions
,Average & Marginal Cost Video Lecture | Business Economics for CA Foundation
,shortcuts and tricks
,Average & Marginal Cost Video Lecture | Business Economics for CA Foundation
,past year papers
,practice quizzes
,MCQs
;
Study Average & Marginal Cost on the App
Students of CA Foundation can study Average & Marginal Cost alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Average & Marginal Cost,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Average & Marginal Cost is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup