CS 9 PdnFcn Pdct & Cost Curves

CS 9 PdnFcn Pdct & Cost Curves - $8 $9 $10 Q...

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CLASS SUPPLEMENT # 9 PRODUCTION FUNCTION, PRODUCT AND COST CURVES $10 W = $20 PK = AFC AVC MC ATC TC TVC TFC MPL APL TP L K AP L = TP / L MP L = Î TP / Î L 0.00 0.00 0.00 0.00 20 0 20 0 0.00 0 0 1 TFC = P k X K 4.00 2.00 2.00 6.00 30 10 20 5 5.00 5 1 1 TVC = W X L 1.67 1.67 1.43 3.33 40 20 20 7 6.00 12 2 1 TC = TVC + TFC 1.11 1.67 1.67 2.78 50 30 20 6 6.00 18 3 1 ATC = TC / Q 0.87 1.74 2.00 2.61 60 40 20 5 5.75 23 4 1 MC = Î TC / Î Q = W / MP L 0.74 1.85 2.50 2.59 70 50 20 4 5.40 27 5 1 AVC = TVC / Q = W / AP L 0.67 2.00 3.33 2.67 80 60 20 3 5.00 30 6 1 AFC = TFC / Q 0.63 2.19 5.00 2.81 90 70 20 2 4.57 32 7 1 0.61 2.42 10.00 3.03 100 80 20 1 4.13 33 8 1 024681 0 1 2 1 4 1 6 1
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Unformatted text preview: $8 $9 $10 Q (OUTPUT) FIGURE 3 AVG. TOTAL, AVG. VAR. & MARGINAL COSTS MC ATC AVC 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 35 $0 $20 $40 $60 $80 $100 Q (OUTPUT) FIGURE 2 TOTAL, VARIABLE AND FIXED COSTS TC TVC TFC 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 35 $0 $1 $2 $3 $4 $5 Q (OUTPUT) FIGURE 4 AVERAGE FIXED COSTS AFC 1 2 3 4 5 6 7 8 5 10 15 20 25 30 35 L (QUANTITY OF LABOR) Q (OUTPUT) FIGURE 1 TOTAL, AVERAGE & MARGINAL PRODUCT TP AP MP...
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