Cost Notes (10-29-09)

# Cost Notes (10-29-09) - TotalCost Quiz...

This preview shows pages 1–6. Sign up to view the full content.

Total Cost Quiz Calculate Costs and Profits Cost Curves

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

View Full Document
Averages and Marginal  Changes ATC = TC/Q OR = ___/Q+TVC/Q MC = ΔTC / ___ MP= ΔTP / ___ TR = __*Q ___ = TP/L Profit = __ – TC  TC = TFC + ___ Profit = P*___ – (TFC + TVC) AVC = ___/Q TVC =  AVC*___ AFC = TFC/___
Production Function for XYZ Inc. Variable costs/day  are \$30 wages for  each worker hired Overhead/day: Taxes \$15 Rent \$50 Machines  \$45 Total/day  \$110 Short Run or Long  Run?

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

View Full Document
TVC= \$30 per unit of Labor;  Overhead/day=Rent 50, Mach. 45,tax 15—Complete the  table #L Q TVC TFC TC AVC AFC ATC MC 0 0 0 30 30 --- --- --- --- 1 12 30 30 60 2.5 2.5 5 2.5 2 31 60 30 90 1.95 .96 2.90 1.57 3 41 90 30 120 2.19 .73 2.92 3 4 50 120 30 150 2.4 .6 3 3.33 5 58 150 30 180 2.58 .51 3.10 3.75 6 64 180 30 210 2.81 .46 3.28 5 7 67 210 30 240 3.13 .44 3.58 10
# Labor Output 0 0 1 12 2 31 3 41

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 03/24/2010 for the course ECO 113 taught by Professor Briggs during the Fall '07 term at Bryant.

### Page1 / 20

Cost Notes (10-29-09) - TotalCost Quiz...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online