01 introduction PPT

242 various measures of cost total cost tc fc vc

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Unformatted text preview: > cost (D) ?? 彐 Surplus (D) > 0 …… 10:37:38 29 10:37:38 30 5 TC: Mankiw, Gregory, Essentials of Economics, 2012, pp. 242 “various measures of cost” total cost TC = FC + VC average total cost ATC = TC / Q average fixed cost AFC = FC / Q average variable cost AVC = VC / Q marginal cost MC = ΔTC / ΔQ ATC: AFC: AVC: MC: output variable cost average fixed cost average variable cost average total cost marginal cost total cost fixed cost 0 $3 $3 $0 − − − − 1 3.3 3 0.3 $3 $0.3 $3.3 $0.3 2 3.8 3 0.8 1.5 0.4 1.9 0.5 3 4.5 3 1.5 1 0.5 1.5 0.7 4 5.4 3 2.4 0.75 0.6 1.35 0.9 5 6.5 3 3.5 0.6 0.7 1.3 1.1 6 7.8 3 4.8 0.5 0.8 1.3 1.3 7 9.3 3 6.3 0.43 0.9 1.33 1.5 8 31 3 8.0 0.38 1 1.38 1.7 12 3 9.9 0.33 1.1 1.43 1.9 10 10:37:38 11 9 15 3 12.0 0.3 1.2 1.5 2.1 10:37:38 32 Mankiw, Gregory, Essentials of Economics, 2012, pp. 259: profit maximization for a competitive firm quantity price total revenue total cost profit 0 gallon $6 $0 $3 -$3 1 6 6 5 1 marginal revenue marginal cost marginal profit $6 $2 $4 − MR = −MC − 2 6 12 8 4 6 3 3 3 6 18 12 6 6 4 2 4 6 24 17 7 6 5 1 5 6 30 23 7 6 6 0 6 6 36 30 6 6 7 -1 7 6 42 38 4 6 8 -2 8 6 48 47 1 6 9 -3 optimal output 10:37:38 largest profit 33 6...
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This document was uploaded on 03/06/2014.

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