Economics 1021A Chapter 11

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

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Unformatted text preview: Missing Numbers Q 1 2 3 4 5 6 7 8 AFC AVC ATC 160 40 200 80 35 115 53.3 36.7 40 80 32 46 78 26.7 81.7 22.9 68.6 91.4 20 85 105 MC 30 40 50 100 150 200 TVC TFC 40 110 160 230 330 680 TC 200 230 270 390 490 640 Fill in the Missing Numbers Q AFC AVC ATC MC TVC TFC 1 85 2 10 3 4 5 TC 10 20 50 32 AP 4 MP 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 Average product and marginal product Average product and marginal product 6 MC 6 AVC 3 0 6.5 10 Pizzas PRODUCT CURVES AND COST CURVES 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 attaina...
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