Intro to Microeconomics_Agnello_Date_042910

Intro to Microeconomics_Agnello_Date_042910 - Exam 2 Ch...

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Exam 2 Ch. 6-13 (except 9 and 12) 4 HMW assignments - 2 ebay, 2 costs 2 Problems (fill in the blank, compute; 1 ebay (auction), 1 costs) Multiple Choice - More realistic and more complicated version of costs arises when a team of workers is needed to efficiently provide. In this case the second, third etc worker may add more production than the first. - So Total Product increases at a faster and faster rate for a while before eventually slowing down due to demanding marginal productivity (graph #1) - Changes to details - MC is u shaped and goes through minimum of both ATC and AVC (new) - AVC is u shaped - No changes in general proportions - MC eventually rise - ATC is u shaped - MC crosses ATC at the minimum of ATC - Focus carefully on figure 5 in Mankiew book - TC = FC + VC SUmmary Remarks on SR Costs - All firms face these costs and the general slops - Details may vary - i.e. slopes, positions, minima, - Team work low Q effort - Decision makers (i.e deciders of P and Q) must know these curves - If firm is complex engineeers or other specialities need to be consulted
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This note was uploaded on 08/30/2010 for the course ECON 151 taught by Professor Harris during the Spring '07 term at University of Delaware.

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Intro to Microeconomics_Agnello_Date_042910 - Exam 2 Ch...

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