Average cost Total cost per unit of output.
Average fixed cost Total fixed cost per unit of output.
Average product Output per unit of the variable input.
Average revenue Total revenue per unit of output.
Average variable cost Total variable cost per unit
Exhibit 1 - Operating Budget
Exhibit 2 - Key performance data
Number of software licenses
Number of new clients
Number of special projects
Work in process inventory, November 1
Work in process inventory, November 30
Materials cost in work in process invent
We recall that perfect competition was theorised as a market
structure where both consumers and firms were price takers.
The behaviour of the firm in such circumstances was described
in the Chapter 4. We discusse
Production and Costs
In the previous chapter, we have discussed the behaviour of the
consumers. In this chapter as well as in the next, we shall examine
the behaviour of a producer. A producer or a firm acquires different
inputs like labour, mac
Theoryy of the F
In the previous chapter, we studied concepts related to a firms
production function and cost curves. The focus of this chapter is
different. Here we ask : how does a firm
1.1 A SIMPLE ECONOMY
Think of any society. People in the society need many goods and
services1 in their everyday life including food, clothing, shelter,
transport facilities like roads and railways, postal services and
In this chapter, we will study the behaviour of an individual
consumer in a market for final goods1. The consumer has to decide
on how much of each of the different goods she would like to
consume. Our objecti
This chapter will be built on the foundation laid down in Chapters
2 and 4 where we studied the consumer and firm behaviour when
they are price takers. In Chapter 2, we have seen that an
Home Depot and Interconnected Retail
Vinay Yevatkar (15404)
Early Years: Home Depot started with Do-It-Yourself large store format. The company had an
entrepreneurial culture with customer service as top priority. The store managers had