BUS 530 MOD 2 WK 2 Response

BUS 530 MOD 2 WK 2 Response NameCourse InstructorDate Caroline Post In Pearson’s lesson text version of the “ Economic Concepts: Production and Cost” there is focus the economic costs of a firm, the short-run and long-run cost curves, market perfect competition and what influences firms' short-run and long-run decisions. The text version includes links to the lessons and one can go back, which makes it easier to understand the relationship between the economic concepts. In Aarwin's World of Finance “Fixed costs/Marginal cost/Total cost/Average cost/Variable cost – CFA Level 1”. Understanding the variable costs, fixed costs and total costs as well as the average variable, fixed and total costs helps to determine how changes in activities affect the costs. Variable costs fluctuate directly with changes in the level of activity, increasing or decreasing in the same direction and proportionally. Fixed costs remain constant even with changes in the level of activity within a certain range. Marisol Post Cost analysis is important to control the costs. There are different ways of categorizing costs, including differentiating the implicit and explicit cost, and this helps to determine the potential loss of income. The explicit cost is linked to the real, tangible and measurable transactions as it can easily be identified and accounted for in a business and...