To: Krzysztof Koj, Professor of Managerial Economics course
From: Mahmood Al Bimani, MBA Student
Subject: Business Brief – Short-Run Cost Minimization
Date: October 21st, 2018
Business Brief
Short-run cost is a short-term cost used in the production process and cannot be re-used later,
such as wages and raw materials used in the producing of goods. It is worth mentioning that in
the short term there is at least one fixed factor and the rest is variable (reference). The difference
between the fixed and variable factor (input) is that the fixed cannot be changed within the given
period of time while the variable can be changed. Therefore, many companies are looking for the
best ways in terms of cost-effectiveness to produce goods or provide service while ensuring that
the product maintain the standard quality, which also call cost minimization (reference). This
brief discusses variable costs that change as the quantity of production changes as well as the
fixed costs that do not change during the short-run period.
