L20X lreq pc jpw

L20X lreq pc jpw - Long Run Equilibrium In Perfect...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Long Run Equilibrium In Perfect Competition Lecture 20 Jennifer P. Wissink ©2009 John M. Abowd and Jennifer P. Wissink, all rights reserved. November 5, 2009
Background image of page 1

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

View Full DocumentRight Arrow Icon
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Announcements Fall 2009 EXAM THIS EVENING or TOMORROW AFTERNOON REMEMBER TO BRING Simple watch Simple calculator Straight edge A couple of different colored writing tools Some form of ID A box of tissues (no, not because the exam will make you cry, it’s for people with all those colds and flues!) PLEASE REPORT TO THE CORRECT LOCATION or we may not have enough exams at your location. GOOD LUCK TO ALL!
Background image of page 2
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ On Doing MCs q tc mc mc 0 $20.00 na 10 $100.00 $6.50 20 $150.00 $5.50 30 $210.00 $6.50 40 $280.00 $7.50 50 $360.00 $8.50 60 $450.00 na mc-1 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 0 10 20 30 40 50 60 q $mc mc-1
Background image of page 3

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

View Full DocumentRight Arrow Icon
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Three Long Run Cost Curves There are three long run cost curves for the firm: long run total cost lrtc = P L L*(q) + P K K*(q) long run average total cost lratc = lrtc/q long run marginal cost lrmc = lrtc/ q The most important is the lratc curve.
Background image of page 4
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Getting The Long Run Average Total Cost Curve for Three Different Levels of K
Background image of page 5

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

View Full DocumentRight Arrow Icon
microL20-F09- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Internal Economies of Scale & Minimum Efficient Scale When the lratc curve is falling it is said to exhibit internal economies of scale.
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/01/2012 for the course ECON 1101 at Cornell.

Page1 / 20

L20X lreq pc jpw - Long Run Equilibrium In Perfect...

This preview shows document pages 1 - 7. Sign up to view the full document.

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