production costs


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production costs

the costs of converting FACTOR INPUTS into higher value OUTPUTS of goods and services. The costs of manufacturing products include costs of raw materials, labour costs, depreciation and maintenance of plant and equipment, and rent, rate, lighting and heating of factory buildings. See also PRODUCTION FUNCTION, COST FUNCTION.
References in periodicals archive ?
23801), John Asker, Allan Collard-Wexler, and Jan De Loecker estimate that OPEC's exercise of market power to hold down output of petroleum shifted substantial amounts of oil production from low-cost fields to higher-cost ones, imposing extra oil production costs of $163 billion (in 2014 USD) on the global economy from 1970 through 2014.
Oil production costs in Iran's onshore fields average about $5/b but excluding the cost of the structural damage to many fields, while offshore costs are less than $4/b.
Lower production costs, reduced waste and less cleaning room time all contribute to a foundry or manufacturer's bottom line.
High natural gas prices and the resulting increase in fertilizer prices, in February 2003, natural gas prices roared higher, taking production costs for nitrogen fertilizers with them.
As requested, we (1) identified the latest production cost estimate and assessed the planned offsets from cost reduction plans, (2) identified areas where additional cost growth is likely to occur, and (3) determined the extent that DOD has informed Congress about production costs.
Capacity restraints at the company's plants in Germany, better economies of scale and lower production costs prompted DaimlerChrysler to shift production to Brazil.
So even accepting the companies' statements fully, developing countries will have to bear production costs set by rich-world economics and not appropriate for them.
Tax incentives offered by other countries, along with favorable exchange rates and cheaper production costs, have lured away about $10 billion in production in recent years, according to a Department of Commerce study released Jan.
In eight years' time (1994-2000), German coal production costs only declined by 8%, which is not considered as likely to enhance the economic viability of RAG (the big German coal producer which is the only beneficiary of the aid).
Keep in mind that although the technology is more advanced, it doesn't always mean the production costs will be less expensive.
That provision provides for computation of CTI under a production-cost ratio method, whereby the sales price is derived using the same proportion of the third-party sales price that (a) the production costs attributable to either (i) the possession component product or (ii) the excluded component product (end-product form), bears to (b) the total production costs for the integrated product.

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