Difference Between Outsourcing and Contracting. Outsourcing has become a common phenomenon in this age of globalization. The desire of the companies to be cost effective in the face of cut throat competition from economies that have cheaper labor and other cheaper competencies has led to outsourcing on a very large scale.
The analysis showed that TMS provides an incremental cost-effectiveness ratio of $36,383 per quality-adjusted life-year (QALY), which is less than the usually accepted willingness-to-pay standard of $50,000 and shows that it is good value for money, Dr. Simpson said.
Total Fixed Cost (TFC) is costs of firm s fixed resources; TFC does not vary with changes in short-run output. Total Variable Cost (TVC) are costs of firm s variable resources, TVC does vary with changes in output. TC = TFC + TVC Average Total Cost (ATC) is the total cost per unit of output. marginal variable which is greater than the average variable will increase the average variable, a smaller than average marginal variable will lower the average variable. Short Run Costs Total Cost (TC) is the cost of all the productive resources used by the firm.