Opposite manner - if the output produced increases to 4...

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Opposite manner The cost behaves exactly in an opposite manner as compared to the behavior of the returns or the output. If input worth $1 produces 3 units of output, then per unit of good, cost of production is 33 cents. If output produced decreases to 2 units per dollar, cost increases to 50 cents per unit and
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Unformatted text preview: if the output produced increases to 4 units per dollar, cost decreases to 25 cents per unit of output. Cost of Input Output Produced Cost per Unit $1 2 50 cents $1 3 33 cents $1 4 25 cents...
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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