Think Break #10 You work for UWEX and have data on several farms in your seven county district You look at all farms with similar sized milking parlors.

Slides:

Advertisements

Similar presentations

Week 6 Managerial Economics. Order of Business Homework Assigned Lectures Other Material Lectures for Next Week.

Advertisements

Cost Concepts in Economics Chapter 9. Cost Classification Fixed or variable Cash or non-cash Accounting expense or not Opportunity costs.

How to calculate seasonal index Pick time period (number of years) Pick season period (month, quarter) Calculate average price for season Calculate average.

1 Relationship of Marginal Product & Average Product Consider the Height of Students in a class Total Height = S 1 + S 2 + S 3 + S 4 + S 5 + S 6 + S 7.

Lectures in Microeconomics-Charles W. Upton Mathematical Cost Functions(3) C= 10+20q+4q 2.

Costs Curves Diminishing Returns

The Supply Curve. Diminishing Returns – Using Marginal Analysis Firms employing one additional unit to create another good or service.

© Business Studies Online “A firm Breaks Even if it doesn’t make a profit or a loss” In other words profit = 0 For this to happen the money coming into.

Production & Profits. Production and Profits Jennifer and Jason run an organic tomato farm Jennifer and Jason run an organic tomato farm The market price.

Cost and Production J.F.O’Connor. Production Function Relationship governing the transformation of inputs or factors of production into output or product.

Chapter 13: Cost Curves (day 4) Warm-Up Fill in the missing boxes on your “Calculating Costs” table on your worksheet.

Chapter 5 Section 2.  Marginal Product of Labor ◦ The change in output from hiring one additional unit of labor  Increasing Marginal Returns ◦ Workers.

COST, Revenue, profit. Lesson objectives  Difference between fixed and variable costs.  Difference between direct and indirect costs.  Difference between.

Jeopardy Formulas Perfect Competition Monopoly Price Discrimination Problems Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

The Costs of Production

Who wants to be an accountant?. What is the Goal of Business Firms?  The goal of every company is to MAXIMIZE PROFITS.

CDAE Class 08 Sept. 20 Last class: 2. Review of economic and business concepts Today: 2. Review of economic and business concepts Quiz 2 (Time value.

AAE 320 Exam # 1 Review Paul D. Mitchell. Goal Explain what to expect for exam Overview topics on exam Give idea of how to study.

A C T I V E L E A R N I N G 1: Brainstorming

Discussion Session 2. Marginal Benefit The following table shows Abby’s willingness to pay for apples Calculate her marginal benefit from apples. Quantity.

BU224: Microeconomics Unit 6 Seminar Tutor Center: (Check the Business Tutor Center Link) Greg.

Units Of Output TFCTVCTCMCAFCAVC Marginal Cost Puzzle 20.

KRUGMAN'S MICROECONOMICS for AP* Introduction to Perfect Competition Margaret Ray and David Anderson Micro: Econ: Module.

Key Terms Marginal Fixed Cost Variable Cost Total Cost Marginal Cost Average Total Cost Ratio Rate of Change Council for Economic Education.

Economic Costs: Short- Run and Long-Run. Inputs and Outputs A firm is an organization that produces goods or services for sale A firm is an organization.

Average product is the output per worker

1 Chapters 8: Costs of Production. 2 Cost Definitions Total cost (TC) = all costs of production –If r is the cost of capital (rental cost), and w is the.

COSTS OF PRODUCTION. Economic Costs Equal to opportunity costs Explicit + implicit costs Explicit costs Monetary payments Implicit costs Value of next.

 Define the supply curve of a perfectly competitive firm.

Seven times table Self test: 8 questions and answers sequentialrandom.

The Costs of Production M icroeonomics P R I N C I P L E S O F N. Gregory Mankiw

Think Break #10 You work for UWEX and have data on several farms in your seven county district You look at all farms with similar sized milking parlors.

Regulating Monopoly Activity 37. $5.00 1,000 $4.00 $3.00 $2.00 $1.00 2,0003,0004,0005,000 Costs/Revenue Quantity MC ATC DMR.

COST ANALYSIS CHAPTER # 5. Meaning of Cost  By cost we mean “The total sum of money required for the production of specific quantity of a good or service.

Break Even Basics “A firm Breaks Even if it doesn’t make a profit or a loss” In other words profit = 0.

Section 3 – Production costs at Holden plc. Lesson objectives To be able to calculate, explain and interpret fixed, variable, average and total costs.

MANAGERIAL ECONOMICS COST ANALYSIS. In this chapter, look for answers to production and cost questions: What is a production function? What is marginal.

0 Chapter 13. You run General Motors.  List 3 different costs you have.  List 3 different business decisions that are affected by your costs. 1 A C.

Unit 3: Costs of Production and Perfect Competition

Firm Costs Mod 55.

Break-Even Analysis.

1. Calculate the fixed cost for 5 units of output.

Costs in the Short Run.

Warm-Up Imagine that you’re a farmer…

How Do Cost Curves Shift?

Module 25 Perfect Competition

Deriving Marginalism Liem Tran © Council for Economic Education.

How do Firms Calculate Costs?

MODULE 22 (58) Introduction to Perfect Competition

Profit Maximization Day 2

Cost functions Cost function is total cost of inputs the firm needs to produce output q. Denoted C(q). Fixed cost (FC): the cost that does not depend.

A2 Economics Mr. Durham

AAE 320 Exam # 1 Review Paul D. Mitchell.

Model Functions Input x 6 = Output Input x 3 = Output

Think Break #11 These are the Think Break #10 data (FC = $10,000)

Complete the missing numbers using the inverse.

Charts from: “Grazing Dairies: What happens to milk production and income?”

Think Break #7 Grain (lbs) Hay MRTS price ratio

AP MICROECONOMIC Practicing with Cost Curves

Slide 12 presents the total revenue received by the monopolist.

Think Break #9 (Review) Steers Beef MP VMP

Unit 3: Costs of Production and Perfect Competition

Think Break #8 Repeat the previous problem, but now use a milk price of Milk $10/cwt M = – G H – G2 – H2 – GH Prices:

Number Patterns Name: ______________________________

Managed Grazing for Dairy Profits

COSTS, OUTPUT AND OPTIMAL QUANTITY OF PRODUCTION

GDP Calculations.

AAE 320 Exam # 1 Review Paul D. Mitchell.

Presentation transcript:

Think Break #10 You work for UWEX and have data on several farms in your seven county district You look at all farms with similar sized milking parlors and a similar number of workers You calculate the average production per cow as the number of cows varies among the farms Use these data in the table to recommend the optimal milk output and herd size

Think Break #10 Fill in the missing MC’s Cows Milk cwt FC VC TC MC 10000 20 4800 67000 77000 13.96 40 9640 134000 144000 13.84 60 14490 201000 211000 80 19320 268000 278000 100 24100 335000 345000 120 28824 402000 412000 14.18 140 33488 469000 479000 14.37 160 38096 536000 546000 14.54 180 42624 603000 613000 14.80 200 47060 670000 680000 15.10 (VC = $3350/cow) Fill in the missing MC’s If the milk price is $14/cwt, what is the optimal milk output and farm size?

Think Break #10 Answer Cows Milk cwt FC VC TC MC 10000 20 4800 67000 10000 20 4800 67000 77000 13.96 40 9640 134000 144000 13.84 60 14490 201000 211000 13.81 80 19320 268000 278000 13.87 100 24100 335000 345000 14.02 120 28824 402000 412000 14.18 140 33488 469000 479000 14.37 160 38096 536000 546000 14.54 180 42624 603000 613000 14.80 200 47060 670000 680000 15.10 = (211000 – 144000) (14490 – 9640) = (345000 – 278000) (24100 – 19320) P = MC when Milk = 241,000 cwt with 100 cows