When q 600 total variable cost is given by THE SHORT RUN VARIABLE COSTS OF

When q 600 total variable cost is given by the short

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When q > 600, total variable cost is given by: THE SHORT-RUN VARIABLE COSTS OF ALUMINUM SMELTING F IGURE 7.2 The short-run average variable cost of smelting is constant for output levels using up to two labor shifts. When a third shift is added, marginal cost and average variable cost increase until maximum capacity is reached. 𝑇𝑉𝐶 = 1140 600 + 1300 ? − 600 = 1300? − 96,000 Therefore average variable cost is 𝐴𝑉𝐶 = 1300 − 96,000 ? EXAMPLE 7.3 THE SHORT-RUN COST OF ALUMINUM SMELTING
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