Determinants of cost efficiency of the

It falls with an increase in the height of a building. Marginal cost for the nth unit may be expressed as: As the larger output requires the greater amount of resources, the total cost for larger output becomes large. But this may not be the absolute optimum combination if all the factors could be adjusted.

Production with the old and out-dated technique involves higher cost. Marginal costs illustrated in column v is the extra cost incurred by increasing output by one unit. It is the total cost of producing a particular output of the commodity in question.

The greater the output, the greater will be the variable costs.

The profit maximisation requires the use of the particular technique of production which would allow the optimum combination of factors. This is why the cost of land of a multi-storied building is less than that of a bungalow.

It is divided into two parts total fixed cost and total variable cost. Besides, the total cost for producing a given amount of output becomes small when these resources are combined in optimum proportions. Thus if one total cost of producing 10 units of a commodity is Rs.

Average total cost, or simply average cost, refers to the cost per unit of output and is calculated by dividing the total cost by the level of output.

The average total cost figures in column vi are found by dividing the total cost figures of column iv by the levels of output shown in column i. In other words, it is the extra cost of producing on extra unit of output.

In contrast, variable costs changes with output changes. Average cost is divided into two parts average fixed cost i. Thus, the cost of producing a tons of steel depends upon the quantities of iron ore, limestone, coal, blast-furnace, etc.

MC as change in TVC: In other words, MC has no relation to fixed cost.

Over the longer period, all factors can be varied, and so the firm is free to select the production technique of factors. For example, in the construction industry the cost of land is the most important item of fixed cost.

Let us make an in-depth study of the determinants and concepts of cost of production. The cost to the firm of producing any output evidently depends upon the physical quantities of actual resources or services—labour, material, machine hours, and so forth—used in production. In the short period the optimum combination for any given level of output is the least-cost combination possible with the fixed factor units.

And the smaller output requires the smaller resources; the total cost for smaller output becomes small.Determinants of health-system efficiency: evidence from OECD countries.

Authors; Authors and affiliations “Determinants of health system efficiency” section presents the core results of the paper regarding the empirical evidence on the relationship between health-system characteristics and efficiency levels in the provision of.

title = "Determinants of cost efficiency in Malaysian banking", abstract = "This study estimates the cost efficiency and its decompositions of Malaysian banks over the period of to by utilising data envelopment analysis (DEA) method.

The determinants of cost efficiency in cooperative financial institutions: Australian evidence. Author Previous studies of efficiency in cooperative financial institutions assume subsidies to be a normal part of business operations.

size, age, average deposit size and interest rate spreads are significant determinants of relative cost.

Medical Necessity, Quality Management, and Cost Efficiency Determinants. Disclaimer • This presentation is designed to provide accurate and authoritative information in regard to the subject matter.

The information includes both Based on quality and cost-efficiency analysis and risk adjustments. Efficient utilization of the resources as trust of the depositors is the first and foremost responsibility of the Islamic bank, as directed in Al-Quran ().

Efficiency in.

Cost of Production: Determinants and Concepts

This section analyzes the determinants of cost efficiency with the related causes and explanations of the derived results from the (9) regressed models. The results present that there is a positive relationship between capital cost factor and cost efficiency rate (Models 1, 2, 4, 6, 7, and 8) and statistical significance at the 1% level in.

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Determinants of cost efficiency of the
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