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Unformatted text preview: MC s gives the variable cost 2. Example: c ( y ) = y 2 + 1 (a) c v ( y ) = y 2 (b) F = 1 (c) AC = y + 1 /y (d) AV C = y (e) AFC = 1 /y (f) MC = 2 y (g) see ±gure 21.4. in the textbook 3. Example: marginal cost curve for two plants - optimal division of output between the two plants must have the marginal cost of producing output at plant 1 equal to the marginal cost of producing output at plant 2. 4. Long-run cost from short-run cost (see ±gure 21.7. in the textbook) 1 (a) average costs - see fgures 21.8. and 21.9. in the textbook (b) marginal costs - see fgures 21.10. and 21.11 in the textbook 2...
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This note was uploaded on 12/09/2010 for the course ECON 206 taught by Professor Ioanadan during the Summer '10 term at University of Toronto- Toronto.
- Summer '10