Operating optimum
In microeconomics , the operating optimum is referred to as the minimum of the average total costs ( unit costs ). Occasionally the position of the minimum, i.e. the associated production quantity, or the corresponding point is also referred to as the operating optimum. The associated unit price is called the " long-term lower price limit " because the product price must not fall below this limit from the perspective of full cost accounting so that no losses arise. In the event of permanent losses, no (private) production can take place. From the perspective of the partial cost calculation, it would have to be checked beforehand whether the long-term lower price limit, which has been undershot, is still above the short-term lower price limit and thus a positive contribution margin is still achieved.
At a price equal to the operating optimum, the companies are in a zero-profit situation. The operating optimum in this case corresponds to the breakeven point , the profit limit and the profit maximum (= 0!). Consumers can purchase the product at the cheapest price (in the long term) and the assessed resource consumption per product unit is minimal. Setting the price at the operating optimum is particularly useful for a company if it is in cutthroat competition or if the product is producing the product without profit.
The operating optimum is calculated by setting the first derivative of the unit cost function = 0. If you then insert the x-value determined in this way into the unit cost function, you get the long-term lower price limit .
The same result is obtained if the intersection of the marginal cost curve K '(x) and the unit cost curve k (x) is calculated by setting both functions equal and determining the solution quantity.
See also
Individual evidence
- ^ Corsten: Production Management 6th Edition, p. 96