Ch13___Production_and_Costs__Handouts_

Ch13___Production_and_Costs__Handouts_ - Production and...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Production and Cost CHAPTER 13 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain how economists measure a firm’s cost of production and profit. xplain the relationship between a firm’s output and 2 Explain the relationship between a firm s output and labor employed in the short run. xplain the relationship between a firm’s output and 3 Explain the relationship between a firm s output and costs in the short run. 4 Derive and explain a firm’s long-run average cost curve. C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain how economists measure a firm’s cost of production and profit. xplain the relationship between a firm’s output and 2 Explain the relationship between a firm s output and labor employed in the short run. xplain the relationship between a firm’s output and 3 Explain the relationship between a firm s output and costs in the short run. 4 Derive and explain a firm’s long-run average cost curve. 13.1 ECONOMIC COST AND PROFIT ¡ The Firm’s Goal To maximize profit ¡ Profit = Total Revenue – Total Cost Economists vs Accountants 13.1 ECONOMIC COST AND PROFIT John is a teacher earning $80,000 / yr. He quits his job to start “ABC-Computing”, a computer company that sells software for educators. In 2008: He sold 10,000 pieces of software for $10 each. He had to pay $1,000 hosting fees for his website. He also hired a part time employee for $15,000. At the end of the year, his computers depreciated by $1,000. ccountant Accountant Economist 13.1 ECONOMIC COST AND PROFIT ¡ Economic Depreciation 13.1 ECONOMIC COST AND PROFIT John is a teacher earning $80,000 / yr He quits is job to start “ABC-Computing”, a computer company that sells software for educators. In 2008: He sold 10,000 pieces of software for $10 each. He had to pay $1,000 hosting fee for his website. He also hired a part time employee for $15,000. At the end of the year, his computers depreciated by $1,000. ccountant Accountant Economist 13.1 ECONOMIC COST AND PROFIT John is a teacher earning $80,000 / yr He quits is job to start “ABC-Computing”, a computer company that sells software for educators. In 2008: He sold 10,000 pieces of software for $10 each. He had to pay $1,000 hosting fee for his website. He also hired a part time employee for $15,000. At the end of the year, his computers depreciated by $1,000. ccountant Accountant Economist 13.1 ECONOMIC COST AND PROFIT ¡ The Firm’s Goal To maximize profit ¡ Profit = Total Revenue – Total Cost Economists vs Accountants C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain how economists measure a firm’s cost of production and profit....
View Full Document

This note was uploaded on 03/24/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

Page1 / 59

Ch13___Production_and_Costs__Handouts_ - Production and...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online