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Economic Analysis of Infosys
4th January 2018
ECONOMIC ANALYSIS OF INFOSYS
1: Fixed, variable and average cost curves of Infosys:
Based on the Company’s marketing position, there seems to have been a decline in the
past few years which has caused a decline in the short-run marginal cost (MC). However, the
company has managed to come back and the decline seems to be going up in the past two years
which continues to cause an intersect the average the average total cost as well as average
variable cost curves. In regards to the average variable cost (AVC), Infosys’ curve seems to be
slowly going down but it is likely to go up but not as fast as the marginal cost curve. A good
example can be cited as the past t few years whereby; the company’s revenue seems to have
grown to from 25% in 2012 to 36% to 45% in 2014-2015. For justification, below is a good
diagram supporting Infosys company’s fixed variable and average cost curves.
2: Can price elasticity of demand be assessed for Infosys?
Last year, Infosys surprised its compe...