What is the difference between average propensity to save and marginal propensity to save? The concept of saving is closely connected with the concept of consumption. The excess of income over consumption is saving. In other words saving is the income which is null consumed.
What does average revenue and marginal revenue mean? The relationship between AR and MR curve explained.
The total revenue of a firm is equal to the total output multiplied by price. It is the total receipt of a firm from its sale. From the total receipts or revenues we derive Average and Marginal revenue.
The between Average Revenue and Marginal Revenue of a firm explained along with the relationship between AR and MR under perfect competition.
How are the average and marginal costs of production are related? Average cost is the total cost per unit of output. It is c cost per unit. Average cost is the sum total of Average variable it and average fixed cost. Average cost depends on the behavior of AVC and AFC.
Why the short-run average total unit cost curve of a firm is U-shaped? The short run average cost is the sum total of average fixed cost and average variable cost. The average fixed cost declines as the total fixed cost is spread over a large volume of output.
Under this method, the rate for material issues is determined by dividing the total of the periodic simple average prices of a given number of periods by the numbers of periods.
This method is like weighted average price method, except that the calculations of issue prices are made periodically (say, a month).