Production cost - production cost

Japanese: 生産費 - せいさんひ

The total price paid for production factors such as land, capital, machinery, raw materials, and labor. Companies minimize this with a given technology. In the short term, costs can be classified into fixed costs, which are required at a constant amount regardless of production volume, and variable costs, which change according to changes in production volume. The sum of fixed costs and variable costs is called total cost, and total cost divided by production volume, in other words, the cost per unit of product, is called average cost, and the change in cost when production volume is increased by one additional unit is called marginal cost. Competing companies determine the production volume where marginal cost is equal to price, and when price is equal to average cost, profits are zero.
→ Related topics Law of production costs | Cost price

Source : Heibonsha Encyclopedia About MyPedia Information

Japanese:

土地・資本・機械・原料・労働などの生産要素に支払われる代価の総額。企業は与えられた技術のもとでこれを最小化する。短期的には生産量に関係なく一定額必要な固定費用と生産量の変化に応じて変化する可変費用とに分類できる。固定費用と可変費用の和を総費用といい，総費用を生産量で割ったもの，つまり生産物１単位当りの費用を平均費用，生産量を追加的に１単位増加させたときの費用の変化量を限界費用という。競争する企業は限界費用と価格が等しくなるところで生産量を決定し，価格が平均費用と等しいとき，利潤は０である。
→関連項目生産費の法則｜費用価格

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