Ag Econ Chapter 7

Ag Econ Chapter 7 - Ag Econ Chapter 7 turn in homework by...

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Ag Econ Chapter 7 turn in homework by 5pm on B314 in Clark production function – some level of output from input Inputs – labor, fabric, supplies, etc y = function of x 1 etc marginal Physical product – differences in TTP/ diff in X economists do not build these curves, we just use the numbers to create it, we don’t generate the numbers we are concerned with the costs. we need to know this so that we can find out the profit short run vs long run short run = 1 imput that is fixed long run – depreciation – originally designed to be put into a escro account so that you have money to purchase another NEED TO KNOW FOR THE EXAM!! average variable cost – total variable cost average fixed cost – total fixed cost average total cost – total cost what is the optimum sized plant – too big equals not efficient marginal cost – how much more is it going to cost to produce the next item change in total variable cost/ change in Q neighbor producing cheeper – worst enemy Long run cost curvces are made up of lots of short run cost curves optimum point it the lowest point on the curve PAY ATTENTION TO THE PAGE WIT L ON IT long run average cost, long run average total cost curves first one
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scale we talk about increasing at a certain factor (2x, 3x) larger I get, the cheaper it is to plant size very few of these examples
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Ag Econ Chapter 7 - Ag Econ Chapter 7 turn in homework by...

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