1 Lecture

1 Lecture - MC = change in TC / Change in Q Change in TC =...

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Lecture 1 Exam 2 13:17 Exam  High 105 Low 53 Median 84 CHAPTER 5 Analysis of Cost The economic concept of cost Opportunity cost Short run and long run cost functions 1. Short run cost functions Total Fixed Cost, TFC Total Variable Cost, TVC Total Cost, TC Quantity of output, Q TC = TFC + TVC AFC = TFC / Q AVC = TVC / Q ATC = TC / Q = AFC + AVC Marginal Cost, MC
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Unformatted text preview: MC = change in TC / Change in Q Change in TC = TC2 TC1 Q2 Q1 = Change in Q Find the rate of input that results in an minimum average variable cost (AVC) TC = 1000 + 10Q 0.9Q^2 + 0.04Q^3 TVC = 10Q 0.9Q^2 = 0.04Q^3 AVC = TVC / Q = 10- 0.9Q + 0.04Q^2 MC = dTC / dQ 13:17 13:17...
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This note was uploaded on 02/23/2012 for the course 373 363 taught by Professor Hochman during the Spring '12 term at Rutgers.

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1 Lecture - MC = change in TC / Change in Q Change in TC =...

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