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Monique T

When talk isn't cheap | The Globe and Mail - 0 views

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    This article describes the cell phone costs that one small business owner is experiencing. These cell phone costs could be both fixed and variable costs - she still has to pay her basic cell phone bill no matter how many clients she has, so that cost is fixed regardless of output, in that sense, because at a certain rate the costs are constant. However, if she has a larger number of customers, and needs to call to deal with more of these customers, therefore going over her monthly plan limits, than the cost will begin to vary, so in that sense it is a variable cost. Overall, she needs to attempt to reduce this production cost in order to gain a better profit for her business.
Katie Edwards

New Design to Reduce Solar Manufacturing Costs - 0 views

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    This article highlights the redesign of solar manufacturing so that it is cost-efficient for the company, as well as energy-efficient for the consumers. The lower-cost manufacturing is simpler by a decision to minimize some production costs by combining the design into a "single silicon wafer processing line." Clearly, it's a variable cost, and a positive change for the firm.
Monique T

P&G to lay off 1,600 non-manufacturing employees to cut costs | Economic Times - 1 views

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    This article details how the large company Proctor & Gamble is attempting to cut variable costs by eliminating jobs, which leads to lower labour costs. This action results in a lower cost for their products, leading to more productive efficiency. This competitive behaviour is also partially reflective of perfect competition, where companies must decrease costs in order to increase profits; however the article also focuses a lot on the advertising done by Proctor & Gamble, which is not fitting with the assumptions of the perfect competition model.
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