What are quasi-fixed inputs?
Quasi-fixed factors are factors of production that can be adjusted in a time period, the short run, but will not be adjusted all the way to the equilibrium level because of constraints such as adjustment costs.
What does quasi-fixed mean?
Quasi-fixed means those labor costs that don’t change with hours worked but do change with employment. Examples include: • Costs of hiring new workers • Costs of training new workers • Social insurance programs (e.g., social security, worker’s compensation insurance, unemployment insurance, etc.)
Can quasi-fixed cost be avoided?
only quasi-fixed costs can be avoided if the output is zero.
When average product is decreasing marginal product?
If marginal product is less than average product, then average product declines. If marginal product is greater than average product, then average product rises. If marginal product is equal to average product, then average product does not change.
What do you mean by quasi?
Definition of quasi
(Entry 1 of 2) 1 : having some resemblance usually by possession of certain attributes a quasi corporation. 2 : having a legal status only by operation or construction of law and without reference to intent a quasi contract. quasi- combining form.
What is sunk cost?
sunk cost, in economics and finance, a cost that has already been incurred and that cannot be recovered. In economic decision making, sunk costs are treated as bygone and are not taken into consideration when deciding whether to continue an investment project.