ECON-week-9 - Economics:Week9Exam2 29/10/200713:23:00

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Economics: Week 9 Exam 2 29/10/2007 13:23:00 Total Cost  = Fixed Cost + Variable Cost Marginal Revenue  = Change in Total Cost / Change in Quantity Average Total Cost  = Total cost / Quantity Marginal Cost  = Avg. Total Cost at the  minimum  Avg. total cost Time     Short Run:  A period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. o Fixed Costs > 0 Long Run:  a period of time in which the quantities of all inputs can be varied.
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o Fixed Costs  =  0 o Total Costs = Variable Costs Returns To Scale     Scale:   Level of Production 1)  Economies of Scale o More you produce, the less it costs to produce. 2)  Constant return to scale o Being able to produce a certain quantity for no extra cost 3)  Diseconomies of Scale o
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This note was uploaded on 01/16/2012 for the course ECON 2000 taught by Professor Roussell during the Fall '06 term at LSU.

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ECON-week-9 - Economics:Week9Exam2 29/10/200713:23:00

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