Fixed cost degression

the variable unit cost prices with a linear total cost function are constant there, the process of the average cost function essentially by the fixed unit cost prices one determines. Since the fixed costs with rising yield quantity distribute themselves on ever more products, the function of the fixed unit cost prices and concomitantly the entire unit cost price function exhibits a falling process. This circumstances are called fixed cost degression.

Fixed cost degression: Acceptance of the fixed costs per piece with rising yield quantity.

 

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