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The production decision has to be based on the capacity to produce (the production function) but also on the costs of production (the cost function) Firms seeking profit maximization are concerned with both the short run and long run cost-output relationship. A cost is considered to be relevant if it is affected by management decision. Costs that are independent of the firm decision or the firm has to bear irrespective of its decision are called irrelevant costs.
The production decision has to be based on the capacity to produce (the production function) but also on the costs of production (the cost function) Firms seeking profit maximization are concerned with both the short run and long run cost-output relationship. A cost is considered to be relevant if it is affected by management decision. Costs that are independent of the firm decision or the firm has to bear irrespective of its decision are called irrelevant costs.
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The production decision has to be based on the capacity to produce (the production function) but also on the costs of production (the cost function) Firms seeking profit maximization are concerned with both the short run and long run cost-output relationship. A cost is considered to be relevant if it is affected by management decision. Costs that are independent of the firm decision or the firm has to bear irrespective of its decision are called irrelevant costs.
Hak Cipta:
Attribution Non-Commercial (BY-NC)
Format Tersedia
Unduh sebagai PDF, TXT atau baca online dari Scribd