adjustment cost的意思|示意

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Adjustment cost, also known as transition cost, refers to the costs incurred by firms or individuals due to changes, such as changes in technology, regulations, ownership structure, etc. It is meant to measure the short term and long term costs associated with changing the current state of affairs, and thus being able to compare the costs with the expected benefits of the change.

For example, if a company decides to invest in new technology, the company will incur costs associated with setting up the new technology, training employees to use the new technology and any other costs that could be associated with the switch (i.e. marketing, extra labor costs, etc.). These costs would be classified as adjustment costs.

These costs can also be used to measure the efficiency of the changes that have been made, as the amount of adjustment cost will be indicative of how difficult the change was to implement. If the adjustment cost was low, then the change was easy to implement, however if the adjustment cost was high, then it would mean that the change was difficult to implement and that the resources expended on the change may not have been worth it.

A company may also use adjustment costs to measure the cost of changing to a different plan or strategy. This could be helpful in determining whether the change was worth it, or if the costs associated with the change outweighed the benefits.

Adjustment cost is an important concept in economics, as it allows us to measure the cost of changes. Without it, we would not be able to accurately assess the cost and benefit of implementing changes to the current state of affairs. It also allows us to measure the efficiency of the changes that have been made, as well as measure the cost of changing to a different plan or strategy.