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When Reducing Project Duration, the Crash Cost Per Unit Has

question 94

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When reducing project duration, the crash cost per unit has to be calculated and the maximum units each activity can be reduced must be known. After this, the critical path must be identified. What is the next step?


Definitions:

AVC Curve

The Average Variable Cost (AVC) Curve graphically represents how the cost per unit changes as the level of output is altered, typically showing a U-shaped curve due to economies and diseconomies of scale.

MC Curve

Marginal Cost Curve, which depicts the change in total cost that arises when the quantity produced is incremented by one unit.

AVC Curve

Stands for Average Variable Cost Curve, a graphical representation that shows the average variable costs of production at different levels of output.

ATC Curves

The graphical representation of the relationship between average total costs and output levels in the short run for a firm.

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