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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Webster Groves who wrote (33371)	7/6/2004 12:37:28 AM
From: Elroy Jetson	Read Replies (1) of 206118

Until a decision is made to close a hotel completely, the marginal cost of of providing a hotel room does not depend upon occupancy rates, otherwise the costs in question would not be Marginal Cost. A sudden political claim by the Russian government may dramatically increase overhead costs or place Iokoc in bankruptcy, but it does not change the marginal cost of serving a single customer. Economists often need to reassign cost accounting allocations between marginal with fixed costs as accountants frequently confuse one with the other. How does the marginal cost vary for a business designed for 100 customers when suddenly it has only 1 ? Or look at Yukos. How does the marginal cost vary when a $3B tax bill suddenly comes in the morning mail ?

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