MKT 100 Study Guide - Final Guide: Market Concentration, Herfindahl Index, Fixed Cost

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

Classification of expenses (variability: variable cost, fixed cost, one time fixed cost (capital cost) Increases directly in proportion to the level of dollars or units sold: also referred to as the cost of goods sold, examples include. Fixed costs: stay the same regardless of sales, fixed costs are sometimes referred to as operating overhead expenses, examples include: One time fixed costs: similar to capital costs, capital costs are the fees associated with the initial setup of a plant or project. Capital costs are one time fixed costs. Capital costs are fixed and therefor independent: examples include: Formula: change % = {(new amount - old amount)/old amount)} x 100. Market share: % of a market accounted by a specific entity, unit market share: % of units sold by a particular company, revenue market share: % of revenue. Three (four) firm concentration ratio: the total (sum) of the market shared by the leading three (four) competitors in a market.