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average_cost
has definitions from the field of business
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[ noun ] (business) total cost for all units bought (or produced) divided by the number of units
Used in print (Allan J. Braff and Roger F. Miller, "Wage-Price...)For the industry of this model , the effect of such public pressures in the past has been to hold the price well below the short-run profit maximizing price ( given the wage rate and the level of GNP ) , and even below the entry limited price ( but not below average_cost ) . We assume that average total unit_cost in the relevant region of operation is constant with_respect_to quantity produced ( the average_cost curve is horizontal , and therefore is identical with the marginal_cost curve ) , and is the same for every firm ( and therefore for the industry ) . The level of this average_cost is determined by factor prices , technology , and_so_forth . The level of average_cost ( equal to marginal_cost ) is thus strictly a function of the wage rate . Related terms |
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