MARGINAL COST OF INDUSTRIAL PRODUCTION

Mariana Man (), Vladimir Modrak and Janusz Grabara
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Mariana Man: Universitatea din Petrosani
Vladimir Modrak: Technical University in Kosice
Janusz Grabara: Czestochowa University of Technology

Polish Journal of Management Studies, 2011, vol. 3, issue 1, 62-69

Abstract: One of the important issues of production management is the most efficient possible use of the production capacity as the global level of the production fixed expenses depends on the unit’s production capacity and their level per product unit diminishes as the degree of employment of such a capacity tends to be optimum. Accordingly, to a certain volume of achieved production one may add or subtract, under certain circumstances, a certain volume (lot, stratum, and margin) of products; at the same time, the increase or the decrease of production volume determines the change of the total production costs of the unit. As the level of the total costs corresponding to the production that is going to be achieved until the adoption of the decision of increasing or decreasing production level already exists, and the sum total production costs are modified with is determined by the added or subtracted production volume (stratum, lot, and margin).

Keywords: Marginal cost; production; product volume (search for similar items in EconPapers)
JEL-codes: C00 L00 (search for similar items in EconPapers)
Date: 2011
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