Unformatted text preview: Economic Costs 1 By the end of this section, you
should be able to…..
should Define and calculate total cost, average cost,
and marginal cost.
Graphically depict the total cost, fixed costs
and variable cost curves.
Discuss the difference between costs in the SR
and in the LR
Know if you have economies of scale,
diseconomies of scale or negative economies
of scale and what that means.
Draw the LR cost curve. Costs Overview Costs are looked at in different ways in the
short run and in the long run.
short The short run is a time period in which
producers are able to change the quantities of
some but not all of the resources they employ.
some A firm ca...
View Full Document
- Spring '14
- Economics, Economics of production, Cost curve