Short Run Cost

By Navneet and Gurpreet CSE

Short Run Costs

In this note we consider production costs in the short run, in particular the difference between fixed and variable costs and the relationships between marginal and average costs. In the short run, because at least one factor of production is fixed, output can be increased only by adding more variable factors. Hence we consider both fixed and variable costs Fixed costs Fixed costs are business expenses that do not vary directly with the level of output i.e. they are treated as independent of the level of production. Examples of fixed costs include the rental costs of buildings; the costs of leasing or purchasing capital equipment such as plant and machinery; the annual business rate charged by local authorities; the costs of full-time contracted salaried staff; the costs of meeting interest payments on loans; the depreciation of fixed capital (due solely to age) and also the costs of business insurance. Fixed costs are the overhead costs of a business. They are important in markets where the fixed costs are high but the variable costs associated with making a small increase in output are relatively low. We will come back to this when we consider economies of scale. Total fixed costs            (TFC)                remain constant as output increases Average fixed cost          (AFC)    =          total fixed costs divided by output Average fixed costs must fall continuously as output increases because total fixed costs are being spread over a higher level of production. In industries where the ratio of fixed to variable costs is extremely high, there is great scope for a business to exploit lower fixed costs per unit if it can produce at a big enough size.  Consider the new Sony portable play station. The fixed costs of developing the product are enormous, but these costs can be divided by millions of individual units sold across the world. A change in fixed costs has no effect on marginal costs. Marginal costs relate only to variable costs! Variable Costs Variable costs are costs that vary directly with output. Examples of variable costs include the costs of intermediate raw materials and other components, the wages of part-time staff or employees paid by the hour, the costs of electricity and gas and the depreciation of capital inputs due to wear and tear. Average variable cost (AVC) = total variable costs (TVC) /output (Q) Variable costs are those associated with changes in short run production – what are the variable costs associated with an increase in the production of Californian wine shown in the picture above? Average Total Cost (ATC or AC) Average total cost is simply the cost per unit produced Average total cost (ATC) = total cost (TC) / output (Q) Marginal Cost Marginal cost is the change in total costs from increasing output by one extra unit. The marginal cost of supplying an extra unit of output is linked with the marginal productivity of labour. The law of diminishing returns implies that the marginal cost of production will rise as output increases. Eventually, rising marginal cost will lead to a rise in average total cost. This happens when the rise in AVC is greater than the fall in AFC as output (Q) increases. Worked example of short run production costs A simple numerical example of short run costs is shown in the table below. Fixed costs are assumed to be constant at £200. Variable costs increase as more output is produced. Output (Q) Total Fixed Costs (TFC) Total Variable Costs (TVC) Total Cost Average Cost Per Unit Marginal Cost (the change in total cost from a one unit change in output) (TC= TFC + TVC) (AC = TC/Q) 0 200 0 200 50 200 100 300 6 2 100 200 180 400 4 2 150 200 230 450 3 1 200 200 260 460 2.3 0.2 250 200 280 465 1.86 0.1 300 200 290 480 1.6 0.3 350 200 325 525 1.5 0.9 400 200 400 600 1.5 1.5 450 200 610 810 1.8 4.2 500 200 750 1050 2.1 4.8 In our example, average cost per unit is minimised at a range of output between 350 and 400 units. Thereafter, because the marginal cost of production exceeds the previous average, so the average cost rises (for example the marginal cost of each extra unit between 450 and 500 is 4.8 and this increase in output has the effect of raising the cost per unit from 1.8 to 2.1). Short Run Cost Curves When diminishing returns set in (beyond output Q1) the marginal cost curve starts to rise. Average total cost continues to fall until output Q2 where the rise in average variable cost equates with the fall in average fixed cost. Output Q2 is the lowest point of the ATC curve for this business in the short run. This is known as the output of productive efficiency. A change in variable costs A rise in the variable costs of production leads to an upward shift both in marginal and average total cost. The firm is not able to supply as much output at the same price. The effect is that of an inward shift in the supply curve of a business in a competitive market. An increase in fixed costs has no effect at all on variable costs of production. This means that only the average total cost curve shifts. There is no change at all on the marginal cost curve leading to no change in the profit maximising price and output of a business. The effects of an increase in the fixed or overhead costs of a business are shown in the diagram below.

Environmental Pollution

by Utkarsh Gautam ECE

Environmental pollution

In this topic we are going to deal about different types of pollution and due to these types of  pollution how our environment is facing disasters and calamities.

Introduction:

Environmental pollution can be defined as “the unfavorable alteration of our surroundings”

Types of pollutants:

1. Bio degradable pollutants - decompose rapidly by natural processes.2. Non-degradable pollutants- do not decompose or slowly decompose in the environment.Pollutions are different kinds1.Air pollution2.Water pollution3.Soil pollution4.Marine pollution5.Noise pollution6.Thermal pollution and7.Nuclear hazards

I-Air pollution:

It may be defined as “the presence of one or more contaminants like dust, smoke, mist and odour inthe atmosphere which are injurious to human beings, plants and animals

Sources of air pollution:

a)Natural pollution - volcanic eruptions, forest fires, biological decay, etc. b)Man – made activities – Thermal power plants, agricultural activities etc.

Control Measures:1.Source control:

a)Use only unleaded petrol b)Use petroleum products and other fuels that have low sulphur and ash contentc)Plant trees along busy streets because they remove particulates and carbon monoxide andabsorb noise.d)Industries and waste disposal sites should be situated outside the city centre.e)Use catalytic converters to help control the emissions of carbon monoxide andhydrocarbons.2.

Control measures in Industrial centers

:a)Emission rates should be restricted to permissible levels b)Incorporation of air pollution control equipments in the design of the plant lay out.

II-Water pollution:

It may be defined as “the alteration in physical, chemical and biological characteristics of water which may cause harmful effects on human and aquatic life”.

Types, effects and sources of water pollution:

1.Infectious agents: - Bacteria, viruses, protozoa and parasitic worms.Sources: - Human and animal wastes.Effects: Variety of diseases.2.Oxygen demanding wastes: - Animal manure and plant debris that can be decomposed by aerobic bacteria.Sources: - Sewage, paper mills, and food processing facilitiesEffects: Wastes can degrade quality by depleting water of dissolved oxygen.3.In organic Chemicals: - Water soluble inorganic chemicals.1.Acids2.Compounds of toxic metals such as lead , arsenic and seleniumEffects: Genetic mutations, birth defects and certain cancers.

Control measures of water pollution:

1.The administration of water pollution should be in the hands of state or central government.

2.Industrial plants should be based on recycling operations, because it will not only stop thedischarge of industrial wastes into natural water sources but by products can be extracted fromthe wastes.3.Plants, trees and forests control pollution and they acts as natural air conditioners.4.Highly qualified and experienced persons should be consulted from time to time for effectivecontrol of water pollution.5.Basic and applied research in pubic health engineering should be encouraged.

III-Soil Pollution:

It may be defined as “the contamination of soul by human and natural activities which maycause harmful effects on living beings”.

Types:

1.Industrial wastesSources and effects: - pulp and paper mills, chemical industries, oil refineries, sugar factories etc., these pollutants affect and alter the chemical and biological properties of soil. As a result, hazardous chemicalscan enter into human food chain from the soil; disturb the bio chemical process and finally lead to seriouseffects.2.Urban wastesSources and effects: - Plastics, Glasses, metallic cans, fibers, papers , rubbers , street sweepings, and other discarded manufactured products. These are also dangerous.3.Agricultural practicesSources and effects: - Huge quantities of fertilizers, pesticides, herbicides are added to increase the cropyield. Apart from these farm wastes, manure, slurry, are reported to cause soil pollution.4.Radioactive pollutantsSources and effects: These are resulting from explosions of nuclear dust and radio active wastes penetratethe soil and accumulate there by creating land pollution.5.Biological agents.Sources and effects: Soil gets large quantities of human, animal and birds excreta which constitute the major source of land pollution by biological agents.

Control measures of soil pollution

1.forestry an d farm practices2.Proper dumping of unwanted materials3.Production of natural fertilizers4.Proper Hygienic condition5.Public awareness6.Recycling and Reuse of wastes7.Ban on Toxic chemicals.

IV-Marine pollution:

It may be defined as “the discharge of waste substancesinto the sea resulting in harm to living resources hazards to human health, hindrance to fishery andimpairment of quality for use of sea water”.Source of marine pollution:The coastal zones contain rich heritage, coral reefs, wetlands, and sea grass beds.

Effects of marine pollutants:

1.The presence of heavy metals and organic pollutants cause more damage in birds as thinning of eggshell and tissue damage of egg.2.Oil spilling causes abnormally low body temperature in birds resulting inhypothermia.3.Oil films are able to retard significantly the rate of oxygen uptake by water.

Control measures of marine pollution

1.Plants for conserving marine biodiversity must be taken into account of human needs.2.People should be educated about marine ecosystems and the benefits offered by them.3.Local communities must be involved in protecting and managing their coastal resources4.Social and economic incentives must be offered for conserving and sustainable use of marineresources.

5.Governments must manage their own water while extending cooperation to the neighboringstates.

V-Noise pollution:

It may be defined as “the unwanted, unpleasant or disagreeable sound that causes discomfort for allliving beings”

Types of noise:

1.Industrial noise2.Transport noise3.Neighborhood noise

Effects of Noise pollution

1.This affects human health, comfort and efficiency.2.It causes muscles to contract leading to nervous breakdown, tension3.It affects health efficiency and behavior.4.In addition to serious loss of hearing due to excessive noise, impulsive noise also causes psychological and pathological disorders.5.Brain is also adversely affected by loud and sudden noise as that of jet and aero plane noise etc.

Control and preventing measures

1.Source control – acoustic treatment to machine surface , design changes , limiting the operationaltimings2.Transmission path intervention- the source inside a sound insulating enclosure, construction of a noise barrier or provision of sound absorbing materials3.Oiling – Proper oiling will reduce the noise from the machines.

VI-Thermal pollution:

It may be defined as the “addition of excess of undesirable heat to water that makes it harmful toman, animal or aquatic life or otherwise cause’s significant departures from the normal activities of aquaticcommunities in water”

Sources of thermal pollution

1.Nuclear power plants2.Coal fired power plants3.Industrial effluents4.Domestic sewage5.Hydro – electric power.

Effects of thermal pollution

a)Reduction in dissolved oxygen b)Increase in Toxicityc)Interference with biological activitiesd)Interference with reproductione)Direct mortalityf)Food storage for fish

Control measures of thermal pollution:

a)Cooling towers: - This is used as a coolant, i.e., wet cooling tower, Dry cooling tower  b)Cooling pondsc)Spray pondsd)Artificial lakes – The heated effluents can be discharged into the lake at one end and the water for cooling purposes from the other end.

VII-Nuclear Hazards:

The radiation hazard in the environment comes from ultraviolet, visible, cosmic rays and micro waveradiation which produces genetic mutation in man.

Sources of Nuclear Hazards:

1.Natural Sources – which is in space which emit cosmic rays2.Man made sources ( Anthropogenic sources) These are nuclear power plants, X-rays , nuclear accidents,nuclear bombs, diagnostic kits etc

Effects of Nuclear Hazards

1.Exposure of the brain and central nervous system ot high doses of radiation causes delirium,convulsions and death within hours or days.2.The use of eye is vulnerable to radiation. As its cell die, they become opaque forming cataracts thatimpair sight.3.Acute radiation sickness ios marked by vomiting , bleeding of gums and in severe cases mouth ulcers.4.Nausea and vomiting often begin a few hours after the gastrointestinal tract is exposed . Infection of theintestinal wall can kill weeks afterwards.5.Unborn children are vulnerable to brain damage or mental retardation , especially if irradiation occursduring formation of the central nervous system in early pregnancy.

Control measures:

1.Nuclear devices should never be exploded in air.2.In nuclear reactors, closed cycle coolant system with gaseous coolant may be used to prevent extraneousactivation products.3.Containments may also be employed to decrease the radio active emissions.4.Extreme care should be exercis3ed in the disposal of industrial wastes contaminated with radio nuclides.5.Use of high chimneys and ventilations at the working place where radioactive contamination is high. Itseems to be an effective way for dispersing pollutants.

Solid Waste Management:

Management of solid waste is very important in order to minimize the adverse effects of solid wastes.Types of solid wastes:1.Urban wastesSources – a) Domestic wastes – Food waste, Cloth, Waste paper etcB)Commercial wastes – Packing material, cans, bottles , polythene etc.C)Construction Wastes – Wood, concrete debris etc.D)Bio medical wastes – Anatomical wastes , infectious wastes etc.,2.Industrial wastesSources – a) nuclear power plants – generates radioactive wastesB Thermal power plants – produces fly ash in large quantities3. Chemical industriesProduces large quantities of hazardous and toxic materials 

Steps involved in solid waste management:

1.Reduce, Reuse and Recycle of materials – raw materials re usage should be reduced , reuse of waste materials should be reduced and recycling of the discarded materials into new useful products should also be reduced.2.Discarding wastesa)Land fill : Solid wastes are placed in sanitary landfill system in alternate layers of 80 cm thick refuse, covered with selected earth fill of 20cm thickness b)Incineration: It is a hygienic way of disposing the solid waste. It is a thermal process and isvery effective for detoxification of all combustible pathogensc)Composting: It is another popular method practiced in many cities in our country. In thismethod , bulk organic waste is converted into a fertilizing manure by biological action.

Role of an individual in prevention of pollution:

1.Plant more trees2.Help more in pollution prevention than pollution control3.Use water, energy and other resources efficiently4.Purchase recyclable, recycled and environmentally safe products

5.reduce deforestation

6.Remove NO from motor vehicular exhaust

7.Use of eco friendly products

Notice

All of you must take care for the copyrights of the articles submitted and also be ware of the editing standards. I find very average editing standard in the articles. so try to improve them.

Pawan Dhankhar
Asst Prof
KITM

Character Building

Quotation By Pawan Dhankhar

"Be flexible, but stick to your principles.” Eleanor Roosevelt 

“To educate a person in mind and not in morals is to educate a menace to society.” -Theodore Roosevelt

"Good character is more to be praised than outstanding talent. Most talents are to some extent a gift.  Good character, by contrast, is not given to us.  We have to build it piece by piece— by thought, choice, courage and determination.“   John Luther

"It's not hard to make decisions when you know what your values are." - Roy Disney

“The greatest power that a person possesses is the power to choose.”  - J. Martin Kohe

“People can forgive and forget your mistake.  People cannot forgive nor forget a lie you told them,  not even you.” Unknown

"Ethics is a matter of being good (character) and doing right (action)." - Russell Gough

“Treat other people exactly as you would like to be treated by them…” - Matthew 7:12

“Example is the school of mankind, and they will learn at no other.”      Edmund Burke (1729 - 1797)

"We aim to develop physique, mentality and character in our students; but because the first two are menaces without the third, the greatest of these is character."
— Joseph Dana Allen, Headmaster Poly Prep Magazine Fall 1989

“We are what we repeatedly do.    Excellence, then, is not an Act, but a Habit.”  - Aristotle

“What comes from a book is Knowledge. What comes from the heart is wisdom.”  Garth Brooks

"Integrity is telling myself the truth. And honesty is telling the truth to other people." -- Spencer Johnson

"Goodness is the only investment that never fails." -- Henry David Thoreau

"Unethical practices are always self-destructive over the long run, on both a personal and an organizational level."
-- Tom Morris (from If Aristotle Ran General Motors)

“Only a virtuous people are capable of freedom.”  - Benjamin Franklin

“People trust me. I sell sincerity.”   George Foreman

"No one need wait a single moment before starting to improve the world." - Anne Frank

"What is important is not what happens to us, but how we respond to what happens to us."  - Jean-Paul

"Your personality is what you are in front of people; your character is who you are when nobody else is looking."  - Mary Levy

"Character is POWER;  it makes friends, draws patronage and support and opens the way to wealth, honor and happiness." — J. Howe  

"Happiness is that state of consciousness which proceeds from the achievement of one's values.”   Ayan Rand

"If we don't discipline ourselves, the world will do it for us.”  -   William Feather

"Character cannot be developed in ease and quiet.   Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”  Helen Keller

"The first and best victory is to conquer self." — Plato

"It takes less time to do a thing right than to explain why you did it wrong." — Henry Wadsworth Longfellow 

“The best way to find yourself, is to lose yourself in the service of others.”    — Gandhi 

"Change your thoughts and you change your world.”  Norman Vincent Peale

"Courage is resistance to Fear, mastery of fear - not absence of FEAR.”   Mark Twain

“…..people tend to prefer to remain in a crowd of wrongs,  than to be right alone.”  Unknown

"If you tell the truth you don't have to remember anything.”  Mark Twain

"There are seven things that will destroy us: Wealth without Work; Pleasure without conscience; Knowledge without Character; Religion without sacrifice; Politics without Principle; Science without humanity; Business without Ethics.“  - Mahatma Gandhi 

“Only I can change my life.  No one can do it for me.” Carol Burnett

“Truth is the only safe ground to stand on.”Elizabeth Cady Stanton 

"No act of kindness, no matter how small, is ever wasted. Aesop

"All I Really Need to Know  I Learned in Kindergarten” Robert Fulghum

You gain Strength, Courage and Confidence by every experience in which you really stop to look fear in the face.   You are able to say to yourself, 'I have lived through this horror.   I can take the next thing that comes along.”   Eleanor Roosevelt

“To be trusted is a greater compliment than to be loved.” George MacDonald

 “Tenderness and kindness are not signs of weakness and despair, but manifestations of strength and resolutions.” Kahlil Gibran