1. Chapter 6 Cost and Choice

2. Copyright © 2001 Addison Wesley LongmanSlide 6- 2 Figure 6.1 A Simplified Jam-Making Technology

3. Copyright © 2001 Addison Wesley LongmanSlide 6- 3 Figure 6.2 The Cost Function for Our Simplified Jam-Making Technology

4. Copyright © 2001 Addison Wesley LongmanSlide 6- 4 Figure 6.3 The Jam-Making Technology

5. Copyright © 2001 Addison Wesley LongmanSlide 6- 5 Figure 6.4 Isocost Curves and the Optimal Combination of Inputs

6. Copyright © 2001 Addison Wesley LongmanSlide 6- 6 Figure 6.5 Isocosts and Isoquants

7. Copyright © 2001 Addison Wesley LongmanSlide 6- 7 Figure 6.6 A Long-Run Cost Function

8. Copyright © 2001 Addison Wesley LongmanSlide 6- 8 Figure 6.7 The Optimal Combination of Inputs in the Short Run

9. Copyright © 2001 Addison Wesley LongmanSlide 6- 9 Figure 6.8 The Leontief Production Function

10. Copyright © 2001 Addison Wesley LongmanSlide 6- 10 Figure 6.9 Optimal Input Combinations in the Leontief Technology

11. Copyright © 2001 Addison Wesley LongmanSlide 6- 11 Figure 6.10 A Cost Function Associated with the Leontief Technology

12. Copyright © 2001 Addison Wesley LongmanSlide 6- 12 Figure 6.11 Isoquants Associated with the Cobb- Douglas Technology

13. Copyright © 2001 Addison Wesley LongmanSlide 6- 13 Figure 6.12 Cobb-Douglas Production Function

14. Copyright © 2001 Addison Wesley LongmanSlide 6- 14 Figure 6.13 The Elasticity of Substitution

15. Copyright © 2001 Addison Wesley LongmanSlide 6- 15 Figure 6.14(a) Long- and Short-Run Production Functions

16. Copyright © 2001 Addison Wesley LongmanSlide 6- 16 Figure 6.14(b) Long- and Short-Run Production Functions

17. Copyright © 2001 Addison Wesley LongmanSlide 6- 17 Figure 6.15(a) Short-Run Cost Function

18. Copyright © 2001 Addison Wesley LongmanSlide 6- 18 Figure 6.15(b) Short-Run Cost Function

19. Copyright © 2001 Addison Wesley LongmanSlide 6- 19 Figure 6.16 Some Short-Run Average Cost Curves

20. Copyright © 2001 Addison Wesley LongmanSlide 6- 20 Figure 6.17 Short-Run Total Cost Functions and a Long-Run Total Cost Function

21. Copyright © 2001 Addison Wesley LongmanSlide 6- 21 Figure 6.18 The Long-Run and Average Cost Curve

22. Copyright © 2001 Addison Wesley LongmanSlide 6- 22 Figure 6.19 Long-Run and Short-Run Cost Functions

23. Copyright © 2001 Addison Wesley LongmanSlide 6- 23 Figure 6.20 The Relationship between Long-Run and Short-Run Marginal Cost Functions

24. Copyright © 2001 Addison Wesley LongmanSlide 6- 24 Figure 6.21 Long-Run and Short-Run Marginal Costs