1. Good Morning!
Today’s class:
Finish off WS 9
Midterm Prep
Don’t forget:
To do Worksheet 9 (covered on the midterm, but collected February 8th)
Review & Practice for exam
Extra review sessions (optional):
Lectures A & B: Monday 3-4 in EEB 105
Lecture C: today 5-6 in SMI 205

2. WS9, Part II: Reading BEP from graphs of AC & MC
Reading SDP from graphs of AVC & MC

3. q
100
200
300
400
500
600
700
800
900
1000 MC
1.88
0.68
0.08
3.68
6.08
9.08
12.68 AC
7.73
4.48
2.90
2.33
1.93
1.81
1.94
2.30
2.88
AVC
2.73
1.98
1.43
1.08
0.93
0.98
1.14
1.68
3.18
200

4. Amounts ($) Tangent Slopes ($/item) q 100 200 300 400 500 600 700 800
900
1000 MC
1.88
0.68
0.08
3.68
6.08
9.08
12.68 AC
7.73
4.48
2.90
2.33
1.93
1.81
1.94
2.30
2.88
AVC
2.73
1.98
1.43
1.08
0.93
0.98
1.14
1.68
3.18
($ per item)

5. DiagonalSlopes ($ / item)
Amounts ($) q
100
200
300
400
500
600
700
800
900
1000 MC
1.88
0.68
0.08
3.68
6.08
9.08
12.68 AC
7.73
4.48
2.90
2.33
1.93
1.81
1.94
2.30
2.88
AVC
2.73
1.98
1.43
1.08
0.93
0.98
1.14
1.68
3.18
DiagonalSlopes ($ / item)
($ per item)

6. Reading BEP from MC/AC:
On the TC graph:
BEP corresponds to the slope of the lowest diagonal line which is tangent to the graph of TC.
Lowest AC MC
So on the graph of MC vs q we can locate BEP at the point where MC equals (crosses) AC. (y-coordinate)
BEP=1.8

7. Reading SDP from MC/AVC :
Similarly: on the graph of VC vs q: the SDP corresponds to the slope of the lowest diagonal line which is tangent to VC.
Lowest AVC MC
So on the graph of MC vs q we can locate SDP by looking where MC equals (crosses) AVC.
(y-coordinate!)
SDP=0.9