1. © 2008 Pearson Addison Wesley. All rights reserved Chapter Seven Costs

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

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

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

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

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

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

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

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

10. © 2008 Pearson Addison Wesley. All rights reserved. 7-10 Equation 7.7

11. © 2008 Pearson Addison Wesley. All rights reserved. 7-11 Equation 7.8

12. © 2008 Pearson Addison Wesley. All rights reserved. 7-12 Figure 7.3 Cost Minimization

13. © 2008 Pearson Addison Wesley. All rights reserved. 7-13 Equation 7.9

14. © 2008 Pearson Addison Wesley. All rights reserved. 7-14 Equation 7.10

15. © 2008 Pearson Addison Wesley. All rights reserved. 7-15 Equation 7.11

16. © 2008 Pearson Addison Wesley. All rights reserved. 7-16 Equation 7.12

17. © 2008 Pearson Addison Wesley. All rights reserved. 7-17 Equation 7.13

18. © 2008 Pearson Addison Wesley. All rights reserved. 7-18 Equation 7.14

19. © 2008 Pearson Addison Wesley. All rights reserved. 7-19 Equation 7.15

20. © 2008 Pearson Addison Wesley. All rights reserved. 7-20 Equation 7.16

21. © 2008 Pearson Addison Wesley. All rights reserved. 7-21 Equation 7.17

22. © 2008 Pearson Addison Wesley. All rights reserved. 7-22 Equation 7.18

23. © 2008 Pearson Addison Wesley. All rights reserved. 7-23 Equation 7.19

24. © 2008 Pearson Addison Wesley. All rights reserved. 7-24 Figure 7.4 Output Maximization

25. © 2008 Pearson Addison Wesley. All rights reserved. 7-25 Equation 7.20

26. © 2008 Pearson Addison Wesley. All rights reserved. 7-26 Figure 7.5 Change in Factor Price

27. © 2008 Pearson Addison Wesley. All rights reserved. 7-27 Equation 7.21

28. © 2008 Pearson Addison Wesley. All rights reserved. 7-28 Figure 7.6(a) Expansion Path and Long-Run Cost Curve

29. © 2008 Pearson Addison Wesley. All rights reserved. 7-29 Figure 7.6(b) Expansion Path and Long-Run Cost Curve

30. © 2008 Pearson Addison Wesley. All rights reserved. 7-30 Equation 7.22

31. © 2008 Pearson Addison Wesley. All rights reserved. 7-31 Table 7.1 Shape of Average Cost Curves in Canadian Manufacturing

32. © 2008 Pearson Addison Wesley. All rights reserved. 7-32 Figure 7.7(a) Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

33. © 2008 Pearson Addison Wesley. All rights reserved. 7-33 Figure 7.7(b) Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

34. © 2008 Pearson Addison Wesley. All rights reserved. 7-34 Figure 7.8 Long-Run and Short-Run Expansion Paths

35. © 2008 Pearson Addison Wesley. All rights reserved. 7-35 Figure 7.9(a) Learning by Doing

36. © 2008 Pearson Addison Wesley. All rights reserved. 7-36 Figure 7.9(b) Learning by Doing

37. © 2008 Pearson Addison Wesley. All rights reserved. 7-37 Figure 7.10 Joint Production