What does it mean that the lower the total cost, the greater the economic benefit of production?

The lower the cost, the higher the ROI.

The lower the total cost, the greater the economic benefit of production consumption, which seems to be the same meaning between each other.

Average Cost = Average Variable Clan Cost + Average Fixed Cost.

The average fixed cost is gradually transferred to the product with the increase of good production, and the average fixed cost gradually decreases. So the average cost is getting closer and closer to the average variable cost. Socks disadvantages.

Summary. Dear, I am very happy to answer this question for you, the larger the scale, the less the amortization of fixed costs, if there are only variable costs or variable costs are higher with the larger the scale, then the cost can not be reduced can also reduce the cost of raw materials, labor, management and other aspects. Your purchase of 100 tons of raw materials and 500 tons of raw materials will not be the same, and the bargaining power is greater.

With the expansion of scale and the release of workers' productivity, there will be no situation where workers in certain positions are lazy and idle like in small factories, and the high-paid management is the same, and the salary of managers in charge of two factories is certainly not twice that of one factory.

Dear, hello very filial piety for you this question Oh clear answer, the larger the scale, the less the amortization of fixed costs, if there are only variable costs or variable costs with the larger the scale, then the cost can not be reduced can also reduce the cost of raw materials, labor, management and other aspects. Your purchase of 100 tons of raw materials and 500 tons of raw materials will not be the same, and the bargaining power is greater. With the expansion of scale and the release of workers' productivity, there will be no situation where workers in certain positions are lazy and idle like in small factories, and the same is true for the high-paid management, and the salary of the managers in charge of the two Jianshenshan factories is certainly not twice that of the one factory.

Expansion, the cost of the enterprise, depends on expanding the scale of production, increasing product output, to reduce the unit cost, thereby reducing the total cost of products. The scale of the enterprise is large and the cost is low, which is the scale effect. The scale effect in economics is deduced according to the diminishing marginal cost, that is, the cost of the enterprise includes fixed cost and variable cost, and the mixed cost can be decomposed into these two kinds of cost, after the expansion of production scale, the variable cost increases in proportion to the fixed cost does not increase, so the unit product cost will fall, and the sales profit margin of the enterprise will rise.

The scale effect is therefore also known as economies of scale, that is, the economic benefits brought about by the increase in scale, but the scale is too large, which may lead to the slow transmission speed of information and the disadvantages of information distortion and bureaucratization of management, but instead produce "diseconomies of scale".

This is called economies of scale, not an effect, and it tends to decrease as the number of products increases.

Variable cost is characterized by the fact that the total cost rises as production rises, but the unit cost does not change;

Fixed costs are characterized by the fact that the total cost remains the same within the relevant range, that is, within the production capacity, but the unit cost decreases as the output rises;

When the output increases, the unit variable cost will not change, but the unit fixed cost will decrease, so the cost of the product will decrease, which is often referred to as economies of scale.

This is called economies of scale, not effects.

The amortization rate of the constant cost of a single product is reduced, and it doesn't matter what the effect is, it's useful to know it.

For a given output, the long-term average cost is equal to the short-term average cost, and the long-term average cost is larger than the long-term marginal cost, indicating that the long-term average cost is decreasing. In the long run, the average cost changes more slowly, both decreasing and increasing. This is due to the fact that in the long run, all factors of production can be adjusted at any time, and there is a long period of constant returns to scale from increasing to decreasing returns to scale, while in the short term, the period of constant returns to scale is very short or even none.

The long-term average cost of extended data is U-shaped because of economies of scale versus diseconomies of scale. Economies of scale: Manufacturers have improved economic benefits due to the expansion of production scale, that is, the multiple of the increase in output is greater than the multiple of the increase in cost.

Diseconomies of scale: Manufacturers have reduced economic benefits due to their large scale, that is, the increase in output is less than the increase in cost. Extrinsic economy versus extrinsic uneconomy lead to an upward or downward shift in long-term average costs.

Extrinsic economy: Factors other than the enterprise reduce the cost of the enterprise. Externally uneconomical:

Factors other than the enterprise make the cost of the enterprise rise. The law of change of short-term marginal cost is as follows: at the beginning, the marginal cost decreases with the increase of output, and when the output increases to a certain extent, it increases with the increase of output.

The short-term marginal cost curve is a U-shaped curve that falls first and then rises. The relationship between the short-term average cost and the short-term marginal cost can be illustrated by the characteristics of the above two: Reference**:

Encyclopedia - Long-term average cost.

The long-term average total cost and reduction are characterized by a relatively low GDP, and I think that all the average output decreases because you don't do your job well, and the output reduction is due to the operating costs of a factory.

In the long run, all factors of production can be adjusted at any time, and there is a long period of constant returns to scale from increasing to decreasing returns to scale, while in the short term, the period of constant returns to scale is very short or even none.

There is a long period of constant returns to scale from increasing returns to decreasing returns to scale, while in the short term, the period of constant returns to scale is very short or even none.

Reducing the cost of the enterprise and obtaining the maximum output with the minimum input refers to:

Hello dear dear, it is a pleasure to serve you: reducing the cost of the enterprise, with the minimum input, to obtain the maximum output refers to the following aspects can be achieved by flushing the oak: optimizing the production process:

Through refined management, automated production and other means, improve production efficiency and reduce production costs. Reduce labor costs: Improve employee performance and reduce labor costs by optimizing the organizational structure, improving the quality of employees, and strengthening training.

Reduce logistics costs: reduce logistics costs by optimizing the logistics network and strengthening the management of the first chain. Reduced procurement costs:

Reduce procurement costs by optimizing the procurement process and strengthening the management of first-class merchants. Optimize financial management: Reduce the cost of financial dispersal by optimizing financial processes and strengthening cost control.

Strengthen product innovation: by strengthening R&D investment and improving product quality, we will increase the added value of products and increase corporate profits. Strengthen marketing:

By strengthening market research and improving brand awareness, we can increase product sales and increase corporate profits. To sum up, reducing the cost of enterprises needs to start from many aspects, comprehensively consider, and formulate scientific management strategies in order to achieve cost reduction and sustainable development of enterprises.

Answer]: B refers to the relationship between the average cost and the marginal cost, when the fixed cost is not zero, the average total cost is always greater than the average imitation variable cost, and item C can be excluded; Before the intersection of the marginal cost curve and the average total cost curve, the average total cost is greater than the marginal cost, and the average total cost after the intersection is less than the marginal cost, and this intersection point is the lowest point of the average total cost.