Class notes
Principles of Microeconomics Lecture 17 – Cost Curves
- Course
- Institution
- Book
these notes cover the principles of cost curves. These notes cover short and long run cost curves.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Exam (elaborations) ECO4010 Intermediate Microeconomics final exam review questions with 100% correct answers
-
ECS2602 October/November Exam 2024
-
Samenvatting Intermediate Microeconomics - Microeconomics II (E_EBE2_MICEC)
Seller
Follow
arranmoralesmacias
Content preview
Principles of Microeconomics Lecture 17 – Cost Curves A total cost curve is the graph of a firms total cost function
An average total cost curve is the graph of a firms average total cost function
An average variable cost curve is the graph of a firm’s average variable cost function.
An average fixed cost curve is the graph of a firm’s average fixed cost function.
F is the total cost to a firm of its short-run fixed inputs. F, the firm’s fixed cost, does not vary with the firm’s
output level.
cv(y) is the total cost to a firm of its variable inputs when producing y output units. c v(y) is the firm’s variable
cost function.
cv(y) depends upon the levels of the fixed inputs.
c(y) is the total cost of all inputs, fixed and variable, when producing y output units. c(y) is the firm’s total
cost function;
o
For y > 0, the firm’s average total cost function is
o
In a short-run with a fixed amount of at least one input, the Law of Diminishing (Marginal) Returns must
apply, causing the firm’s average variable cost of production to increase eventually.
Marginal cost is the rate-of-change of variable production cost as the output level changes. That is,
o
MC is the slope of both the variable cost and the total cost functions.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller arranmoralesmacias. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.78. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75057 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now