costs - Microeconomics I Kliknij aby edytowa styl wzorca...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
5/30/11 Kliknij, aby edytować styl wzorca podtytułu Microeconomics I Costs
Background image of page 1

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

View Full Document Right Arrow Icon
5/30/11 Economic cost Economic cost or opportunity cost - the value of the best alternative use of a resource
Background image of page 2
5/30/11 Cost Levels Fixed cost (F) – a production expense that does not vary with output Variable cost (VC) – a production expense that changes with the quantity of output produced Cost (total cost, C) the sum of a firm’s variable cost and fixed cost: C = VC + F
Background image of page 3

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

View Full Document Right Arrow Icon
5/30/11 Marginal cost Marginal cost (MC) – the amount by which a firm’s cost changes if the firm produces one more unit of output MC= C/ q Δ Δ Because only variable cost changes with output in short run: MC = ΔVC/Δq
Background image of page 4
5/30/11 Average Costs Average fixed cost (AFC)- the fixed cost divided by the units of output produced: AFC = F/q Average variable cost (AVC) – the variable cost divided by the units of output produced: AVC = VC/q
Background image of page 5

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

View Full Document Right Arrow Icon
5/30/11 Variation of Short-Run Cost with Output
Background image of page 6
Background image of page 7

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

View Full Document Right Arrow Icon
Background image of page 8
Background image of page 9

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

View Full Document Right Arrow Icon
Background image of page 10
Background image of page 11
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 11

costs - Microeconomics I Kliknij aby edytowa styl wzorca...

This preview shows document pages 1 - 11. Sign up to view the full document.

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