Example of Increasing Cost Indusry and Decreasing Cost Industry?

This is the case for Most Industries
When a New Firm Enters The industry, the resource prices INCREASE know Increases the long run cost curves as well.
The Entire ATC curve shifts upwards
Result: Higher Than The original price equilibrium price, Which is why the Increasing-cost industry at the right graph (second graph) is an upward sloping line
Industry Produces as larger output at a higher product price Because the industry expansion has Increased resource prices and the minimum ATC.
Thus, a higher price is required to induce more production, Because costs per unit of output as production INCREASE rises.This is the case for Most Industries
When a New Firm Enters The industry, the resource prices INCREASE know Increases the long run cost curves as well.
The Entire ATC curve shifts upwards
Result: Higher Than The original price equilibrium price, Which is why the Increasing-cost industry at the right graph (second graph) is an upward sloping line
Industry Produces as larger output at a higher product price Because the industry expansion has Increased resource prices and the minimum ATC.
Thus, a higher price is required to induce more production, Because costs per unit of output INCREASE as production rises.

Concept Of Capital And Revenue Expenditures And Their Related Items

Concept Of Capital And Revenue Expenditures And Their Related Item

Any expenditure incurred in connection with the operation and administration of daily activities of the business is called revenue expenditure. Revenue expenditure is incurred for maintaining earning capacity and working efficiency of the fixed assets. Revenue expenditure is incurred for acquiring merchandise for resale either in its original or improved form. Its benefit expires within a year. Revenue expenditure is shown on debit side of the trading and profit and loss accounts.

Items relating to revenue expenditure

* Expenditure incurred in acquiring raw materials for manufacturing process or finished goods for resale.
* Wages and all other items of manufacturing expenses
* All items of office, administration, selling and distribution expenses
* Repair, maintenance, and depreciation of all the fixed assets.
* Interest on loan and other financial expenses.