Foreign Educator Teaching System

Tag: cost

  • Costs for factors of production

    Costs Total costs –        Total expense of producing an output or a product Average cost –        Total cost divided by output   Costs Fixed cost –        The costs which stays same irrespective of the fact that the business produces or not Variable cost –        A cost which changes as the production of the business changes

  • Private benefit and Social benefit

    Private benefit and social benefit Private cost: the cost which the consumer has to bear Private benefit: the benefit which the consumer enjoys External cost: the cost which the general public bears without consuming External benefit: the benefit which the general public enjoys without consuming

  • Opportunity cost is

    Opportunity cost The next best alternative foregone when a choice is made Opportunity cost is never in money value Opportunity cost is the benefits which could have been received by taking an alternative action.   Circumstances where opportunity cost is present Opportunity cost and consumers Opportunity cost and workers Opportunity cost and producers Opportunity cost…

  • Pricing strategy

    Methods of pricing Cost plus Competitive Psychological Penetration Price skimming   Cost plus pricing The total cost of producing a product is calculated, and after that a mark-up is added to calculate the price   Competitive pricing The price is calculated after keeping in view the price of competition. Competitive price is normally kept just…

  • Brand name influence of sales

    Influence of brand name on sales Brand names aim to build customer loyalty The help the customers remember the brand name along with the product Building a strong brand name results in an increase sales