Adam Mo ż ejko ERAZMUS from Poland.  Average total cost  Average fixed cost  Productivity.

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Presentation transcript:

Adam Mo ż ejko ERAZMUS from Poland

 Average total cost  Average fixed cost  Productivity

It’s a total cost per unit of output, found by dividing total cost by the quantity of output.

ATC=TC/Q  ATC – Average total cost  TC – Total cost  Q – Quantity

We are producing a good, Y. We are considering volume of production (Q – Quantity) from 0 to 6. According to this situation we have data given in a table below:

QTFCTVCTC=TFC+TVCATC=TC/Q , ,667

The average fixed costs (AFC) - show how the fixed cost incurred for each unit of product we produce. It is calculated by dividing the fixed costs (FC) by the volume of production (Q).

AFC=FC/Q  AFC – Average fixed cost  FC – Fixed cost  Q – Quantity  AFC=ATC-AVC

We are producing one good, X. We are considering volume of production (Q- Quantity) from 0 to 10. According to this situation we have data given in a table below:

QATC=TC/QAFC=FC/QAVC=VC/Q

Is a measure of production efficiency. Productivity is the ratio of what is now produced to what is necessary for production we have.

Generally this attitude is in the form of an average, showing total output divided by the total input. Productivity is a measure of output from a production process, per unit of input.

Productivity help us to see, Whether our business have sense. It helps us to understand how our resources (input) information, knowledge, raw materials, money became our product (output) We can see is our effort bring us some outcome.

thank you for your attention