© 2008 Pearson Addison Wesley. All rights reserved Chapter Seven Costs.

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Presentation transcript:

© 2008 Pearson Addison Wesley. All rights reserved Chapter Seven Costs

© 2008 Pearson Addison Wesley. All rights reserved. 7-2 Equation 7.1

© 2008 Pearson Addison Wesley. All rights reserved. 7-3 Equation 7.2

© 2008 Pearson Addison Wesley. All rights reserved. 7-4 Figure 7.1 Short-Run Cost Curves

© 2008 Pearson Addison Wesley. All rights reserved. 7-5 Equation 7.3

© 2008 Pearson Addison Wesley. All rights reserved. 7-6 Equation 7.4

© 2008 Pearson Addison Wesley. All rights reserved. 7-7 Equation 7.5

© 2008 Pearson Addison Wesley. All rights reserved. 7-8 Figure 7.2 Effect of a Specific Tax on Furniture Firms Cost Curves

© 2008 Pearson Addison Wesley. All rights reserved. 7-9 Equation 7.6

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.7

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.8

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.3 Cost Minimization

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.9

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.10

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.11

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.12

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.13

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.14

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.15

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.16

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.17

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.18

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.19

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.4 Output Maximization

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.20

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.5 Change in Factor Price

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.21

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.6(a) Expansion Path and Long-Run Cost Curve

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.6(b) Expansion Path and Long-Run Cost Curve

© 2008 Pearson Addison Wesley. All rights reserved Equation 7.22

© 2008 Pearson Addison Wesley. All rights reserved Table 7.1 Shape of Average Cost Curves in Canadian Manufacturing

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.7(a) Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.7(b) Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.8 Long-Run and Short-Run Expansion Paths

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.9(a) Learning by Doing

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.9(b) Learning by Doing

© 2008 Pearson Addison Wesley. All rights reserved Figure 7.10 Joint Production