Lecture 14 - Lecture 14 15:07 Clicker Questions Concerning...

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Lecture 14  15:07 Clicker Questions Concerning cost and cost curves for a firm which is the true? The verticle distance between the average total and average variable curve at  any given output equals average fiexed cost at that output o Marginal going to pull up the average The difference between short run and long run is that In the short run at least one input is fixed in long run all inputs are variable. “What is the biggest investment in search cost?” Choosing UVa to alternative colleges o Traveled, stayed in motels, read, talked with people. – opportunity in time o S Search Costs, Transaction Costs, and Nobel Prize Search cost- cost of finding that item Transactions cost – the cost of making the deal after making the search cost o Many people ignore search cost and transactions cost o Candy bar – transactions cost and search cost minimal (simple items) o First home – search cost – thousands of dollars looking for the optimal 
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Lecture 14 - Lecture 14 15:07 Clicker Questions Concerning...

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