Section_4_Notes - Section 4 Section Notes EWMBA201A Eva...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
September 19, 2009 Section 4 Section Notes 1 Section 4 Section Notes EWMBA201A Eva Vivalt
Background image of page 1

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

View Full DocumentRight Arrow Icon
September 19, 2009 Section 4 Section Notes 2 Administrative Stuff 1. Recap of evaluations: 1. More of everything: intuition (helping with thought problems), numbers problems, extra problems, real-world examples. 2. Questions that are less crucial can be saved for after class. 3. Extra time after class. 4. I’ll distribute a pre-exam guide with more sample problems to work through and if you have questions on them you can ask me in office hours after section. 2. Sunk costs and Mid-term
Background image of page 2
September 19, 2009 Section 4 Section Notes 3 Recap of Costs Sunk Costs “Don’t worry about things you cannot change” Opportunity Costs “Always know what ALL your options are” Over the relevant time horizon… Total Costs: C(q) Fixed Costs: Not dependant on quantity produced: C(0) Variable Costs: C(q)-C(0) Marginal Costs: Cost of increasing q by a small amount: dC(q)/dq Average Total Costs: C(q)/q Average Variable Costs: vC(q)/q
Background image of page 3

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

View Full DocumentRight Arrow Icon
September 19, 2009 Section 4 Section Notes 4 All the calculus it might be helpful to know Derivative of A + BQ + CQ 2 = B + 2CQ To minimize or maximize something: 1) Take its derivative (with respect to whatever it is that we are choosing, e.g. quantity to produce). 2) Set it equal to 0. 3) Solve for what we are choosing (e.g. Q).
Background image of page 4
September 19, 2009 Section 4 Section Notes 5 Thought Exercise What’s the difference between average cost and marginal cost? Between average variable cost and marginal cost?
Background image of page 5

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

View Full DocumentRight Arrow Icon
September 19, 2009 Section 4 Section Notes 6 Thought Exercise What’s the difference between average cost and marginal cost? Between average variable cost and marginal cost? Marginal cost is the incremental cost of producing an additional unit. Average cost is the per unit cost of production, over all units produced. Side: average total cost divides both variable and fixed costs over
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/21/2009 for the course EWMBA 201A taught by Professor Wolfram during the Fall '07 term at University of California, Berkeley.

Page1 / 24

Section_4_Notes - Section 4 Section Notes EWMBA201A Eva...

This preview shows document pages 1 - 7. Sign up to view the full document.

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