3 367 40 80 32 46 78 267 817 229 686 914 20 85 105 mc

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Unformatted text preview: 0 160 230 330 680 TC 200 230 270 390 490 640 Fill in the Missing Numbers Q 1 2 3 4 5 20 32 10 50 10 AFC AVC ATC MC TVC TFC TC 85 Average product and marginal product 6 4 AP MP Average product and marginal product Falling Falling MP Rising 2 MP and MP and and rising falling rising MC: MC: Labour 0 1.5 MC: 2.0 falling rising rising 12 and AP AP AP and falling Maximum MP and Maximum AP and and rising AVC falling minimum MC minimum AVC 9 AVC AVC MC PRODUCT CURVES AND COST CURVES 6 3 AVC 0 6.5 10 Pizzas Shifts in the Cost Curves The position of a firm's short-run cost curves depends on two factors: technology prices of resources Long-Run Cost Long-run cost is the cost of production when a firm uses the economically efficient quantities of labour and capital. The behaviour of long-run cost depends on the firm's production function. The production function is the relationship between the maximum output attainable and the quantities of both labour and capital. The Production Function Labour 1 2 3 4 5 Marginal product of labour decreasing Output (pizza per day) 1 Oven 2...
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This document was uploaded on 03/14/2014.

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