Class Notes - 11-2-07

Class Notes - 11-2-07 - c. Also can calculate it this way:...

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Microeconomics – Class Notes – 11/2/07 CHAPTER #8 I. Average Costs A. Cost Review a. Profit = TR – TC b. TC = FC + VC c. MC = (the change in total cost) / (the change in Q) B. Average Total Cost (ATC) a. Cost per unit of output b. ATC = (TC / Q) i. Different from Marginal Cost (ATC does not incorporate changes)
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Unformatted text preview: c. Also can calculate it this way: i. ATC = AFC + AVC C. Average Fixed Cost (AFC) a. AFC = (FC / Q) D. Average Variable Cost (AVC) a. AVC = (VC / Q) E. Problems: a. See binder...
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