The equation for the cost function is C = $40,000 + $0.3 Q, where C is the total cost. This is calculated by dividing the total cost by the quantity. The relationship between average cost and quantity is the average cost function.

What are cost concepts?

The concept of cost is a key concept in Economics. It refers to the amount of payment made to acquire any goods and services. In a simpler way, the concept of cost is a financial valuation of resources, materials, undergone risks, time and utilities consumed to purchase goods and services.

What’s the average cost of making a will?

What’s the Average Cost of a Making a Will? 1 A Complicated Process. Drawing up a will isn’t as easy as you may imagine. 2 The Cost of a Will. The fee for having a basic will written can be as little as $150—fairly reasonable and affordable for most people. 3 Do It Yourself. 4 Hire a Lawyer. 5 Will vs. …

What should I do if a customer questions my price?

What the customer really wants to know is what value they will get for the price you’re charging. Here’s how you should respond: First, don’t apologize for your prices. Acknowledge their opinion and that you realize it’s a big investment. Explain, in detail, the value they get for their dollars.

How to respond when your price is too high?

This will align with selling based on value and not on price. For example, if your product or service has lots of different features, find out which ones they would be willing to forgo in order to get a cheaper price. If your product is bundled, un-bundle it if you have to.

What do you call the gap between asked and paid prices?

Pricing experts call this gap between asked-for prices and the actual price that is paid, the “price realization gap.” What is actually paid is referred to as the “pocket price.” This gap is found in every industry across almost every product and service out there.