Long Run Incremental Cost - LRIC


DEFINITION of 'Long Run Incremental Cost - LRIC'

Forward-looking incremental costs that can be accounted for by a company.

BREAKING DOWN 'Long Run Incremental Cost - LRIC'

These are the changing costs that a company can somewhat foresee. For example, oil price increases, rent increases, and expansion and maintenance costs.

  1. Long Run

    A period of time in which all factors of production and costs ...
  2. Marginal Cost Of Production

    The change in total cost that comes from making or producing ...
  3. Incremental Cost

    The encompassing change that a company experiences within its ...
  4. Long-Run Average Total Cost - LRATC

    A business metric that represents the average cost per unit of ...
  5. Elastic

    A situation in which the supply and demand for a good or service ...
  6. Laissez Faire

    An economic theory from the 18th century that is strongly opposed ...
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