Review of Cost Functions and Supply Curve

Figure 1 Economists versus Accountants

Table 1 A Production Function and Total Cost: Hungry Helen’s Cookie Factory Copyright©2004 South-Western

Figure 2 Hungry Helen’s Production Function

Figure 3 Hungry Helen’s Total-Cost Curve

Table 2 The Various Measures of Cost: Thirsty Thelma’s Lemonade Stand Copyright©2004 South-Western

Figure 4 Thirsty Thelma’s Total-Cost Curve

Figure 5 Thirsty Thelma’s Average-Cost and Marginal Cost Curves

Figure 6 Big Bob’s Cost Curves

Figure 6a Big Bob’s Cost Curves

Figure 6b Big Bob’s Cost Curves

Table 3 The Many Types of Cost: A Summary Copyright©2004 South-Western

Table 1 Total, Average, and Marginal Revenue for a Competitive Firm Copyright©2004 South-Western

Table 2 Profit Maximization: A Numerical Example Copyright©2004 South-Western

Figure 1 Profit Maximization for a Competitive Firm

Figure 2 Marginal Cost as the Competitive Firm’s Supply Curve

Figure 3 The Competitive Firm’s Short-Run Supply Curve

Figure 4 The Competitive Firm’s Long-Run Supply Curve

Figure 5a Profit as the Area between Price and Average Total Cost

Figure 5b Profit as the Area between Price and Average Total Cost

Figure 6a Market Supply with a Fixed Number of Firms

Figure 6b Market Supply with a Fixed Number of Firms