For the majority of types of production of possibility of a choice of the sizes of the enterprise where is wider, than we assumed in our example. Actually in many branches the number of the possible sizes of the enterprise is not limited at all. And it means that the smallest changes in output (in sales volume) push to changes in the sizes of the enterprise over time.
Costs of production and product sales (works, the usla is represented by the expenses of the enterprise expressed in a monetary form and connected with use in the course of a of raw materials and materials, components, fuel, energy, work, fixed assets, intangible assets and expenses of non-capital character. They join in a products which level determines profit volume, profitability of production and capital, and also other final indicators of a financial and economic of the enterprise.
Watching these adaptive changes, it is possible to conclude that the curve of long-term automatic telephone exchanges for separate firm consists of a site of curve short-term automatic telephone exchanges in relation to various sizes of those enterprises which can be constructed. The curve of long-term average joint costs (automatic telephone exchange) shows the smallest costs of production of a unit of production with which any output can be provided provided that the firm had in the order enough time for carrying out all necessary changes in the sizes of the enterprise. On graphics the fat line showed a curve of long-term automatic telephone exchanges of firm or as it often call, a choice curve (or a planned curve) firms.
Constants and variable expenses are connected with the volume of a and product cost differently. At output average values of a of separate types of production are formed generally at the expense of constant expenses, i.e. they have the greatest specific weight in the general expenses. With growth of output average decrease due to distribution of constant expenses between a large number of the made production.
it is more and extended more. What will happen to average joint costs in the course of this growth of the enterprise? The answer such is. At first some time expansion of capacities will be followed by decrease in average joint costs. However, eventually input of the increasing and big capacities will lead to growth of automatic telephone exchange.