General

# What is a cost function?What is a cost function?

## What is meant by a cost function?

The cost function describes the relationship between the production volume and the costs incurred for it. In addition to the total costs, fixed and variable costs, average or unit costs and marginal costs are differentiated conceptually, functionally and over time.

## What does the marginal cost function say?

With the help of marginal costs, entrepreneurs can calculate the optimal quantity of a product. These are costs that arise when one more unit of a product is produced. Mathematically, marginal costs are the first derivative of the cost function.

## What is a progressive course?

Progressive costs describe a course of costs in which the costs (total costs) increase more sharply in relation to the change in the number of units produced. This means: if the number of items increases by 10%, the costs increase by more than 10%. Alternative terms: Progressive course of costs, disproportionate costs.

## When is it a revenue-based cost function?

In economics, one speaks of the yield-law course of the cost function when it first increases degressively (i.e. increasingly weaker) and then progressively (i.e. increasingly strongly). The transition from declining to progressive occurs at a turning point.

## How to calculate the operating minimum?

The operating minimum is calculated by setting the first derivative of the variable unit cost function = 0. If you then insert the production quantity determined in this way into the variable unit cost function, you get the short-term lower price limit.

## What is the progression zone?

the area where total costs are increasing faster than employment levels, or the part where marginal costs are greater than average costs.

## What is Progressive Income Tax?

Progressive taxation A progressive tax rate was chosen for income tax. This means that the average tax rate increases as income increases.

## How does progressive tax work?

To put it simply, progressive taxation means that those who earn little pay low taxes or even no taxes at all. Those who earn more pay more taxes. And those who earn a lot have to give an even higher proportion of their income to the state. This is to make taxation as fair as possible.

## How is short-time work benefit taxed?

All forms of short-time work benefits are tax-free because they are covered by unemployment insurance contributions. That means: The 333 euros short-time work benefit from our sample calculation is tax-free for you. However, you increase your personal tax rate with which you have to tax your remaining income.

## What is the tax rate for pension taxation?

This results in the tax rate. For example, if you retired in 2005 or earlier, you have to pay tax on 50% of your pension. For everyone who will retire after 2010, it is already 60% of the pension. If you retire from 2019, 78% of the pension has to be taxed.

## How is the pension taxed?

In 2005, the legislature reorganized the taxation of statutory pensions with the Retirement Income Act. Since then, a fixed portion of the pension is taxable, the rest remains (still) tax-free. You have to pay tax on your income from the pension, this is what is known as deferred taxation.

## How much is the pension tax?

Currently, pensioners only have to pay tax on part of their retirement pension. For pensioners who retire from 2016, 72 percent of the gross annual pension is taxable. An amount of 28% (pension allowance) is tax-free.

## Is the tax deducted from the pension monthly?

However, that does not automatically mean that they have to pay taxes. Thanks to deductions such as health insurance contributions, pensioners often only have to pay taxes from a monthly statutory pension of 1,170 euros if they have no other income.

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