1. Cost Analysis and Estimation
F U N D A M E N T A L S O F
MANAGERIAL ECONOMICS
M A R K H I R S C H E Y
Chapter 8
Cost Analysis and Estimation
PowerPoint Presentation by
Charlie
Cook
© 2003 South-Western/Thomson Learning

2. Short-Run Cost Curves Figure 8.1
Fundamentals of Managerial Economics 7e

3. Total Cost Function for a Production System Exhibiting Increasing, Then Decreasing, Returns to Scale
Figure 8.2
Fundamentals of Managerial Economics 7e

4. Short-Run Cost Curves for Four Scales of Plant
Figure 8.3
Fundamentals of Managerial Economics 7e

5. Long-Run Average Cost Curve as the Envelope of Short-Run Average Cost Curves
Figure 8.4
Fundamentals of Managerial Economics 7e

6. Effect of Transportation Costs on Optimal Plant Size
Figure 8.5
Fundamentals of Managerial Economics 7e

7. Three Possible Long-Run Average Cost Curves for a Multiplant Firm
Figure 8.6
Fundamentals of Managerial Economics 7e

8. Plainfield Electronics: Single Versus Multiplant Operation
Figure 8.7
Fundamentals of Managerial Economics 7e

9. Probability Distributions of Demand
Figure 8.8
Fundamentals of Managerial Economics 7e

10. Alternative Plants for Production of Expected 5,000 Units of Output
Figure 8.9
Fundamentals of Managerial Economics 7e

11. Long-Run Average Cost Curve Effects of Learning
Figure 8.10
Fundamentals of Managerial Economics 7e

12. Learning Curve on an Arithmetic Scale
Figure 8.11
Fundamentals of Managerial Economics 7e

13. Linear Cost-Volume-Profit Chart
Figure 8.12
Fundamentals of Managerial Economics 7e

14. Breakeven and Operating Leverage
Figure 8.13a
Fundamentals of Managerial Economics 7e

15. Breakeven and Operating Leverage (cont’d)
Figure 8.13b
Fundamentals of Managerial Economics 7e

16. Breakeven and Operating Leverage (cont’d)
Figure 8.13c
Fundamentals of Managerial Economics 7e

17. Cost and Production Functions
Figure P8.1
Fundamentals of Managerial Economics 7e