1. Chapter Seven Costs

2. © 2007 Pearson Addison-Wesley. All rights reserved.7–2 Table 7.1 Variation of Short-Run Cost with Output

3. © 2007 Pearson Addison-Wesley. All rights reserved.7–3 Figure 7.1 Short-Run Cost Curves

4. © 2007 Pearson Addison-Wesley. All rights reserved.7–4 Figure 7.2 Variable Cost and Total Product of Labor

5. © 2007 Pearson Addison-Wesley. All rights reserved.7–5 Application (Page 188) Short-Run Cost Curves for a Furniture Manufacturer

6. © 2007 Pearson Addison-Wesley. All rights reserved.7–6 Table 7.2 Effect of a Specific Tax of $10 per Unit on Short-Run Costs

7. © 2007 Pearson Addison-Wesley. All rights reserved.7–7 Figure 7.3 Effect of a Specific Tax on Cost Curves

8. © 2007 Pearson Addison-Wesley. All rights reserved.7–8 Page 190 Solved Problem 7.1

9. © 2007 Pearson Addison-Wesley. All rights reserved.7–9 Table 7.3 Bundles of Labor and Capital That Cost the Firm $100

10. © 2007 Pearson Addison-Wesley. All rights reserved.7–10 Figure 7.4 A Family of Isocost Lines

11. © 2007 Pearson Addison-Wesley. All rights reserved.7–11 Figure 7.5 Cost Minimization

12. © 2007 Pearson Addison-Wesley. All rights reserved.7–12 Figure 7.6 Change in Factor Price

13. © 2007 Pearson Addison-Wesley. All rights reserved.7–13 Page 199 Solved Problem 7.3

14. © 2007 Pearson Addison-Wesley. All rights reserved.7–14 Figure 7.7 Expansion Path and Long-Run Cost Curve

15. © 2007 Pearson Addison-Wesley. All rights reserved.7–15 Figure 7.7 Expansion Path and Long-Run Cost Curve (cont’d)

16. © 2007 Pearson Addison-Wesley. All rights reserved.7–16 Figure 7.8 Long-Run Cost Curves

17. © 2007 Pearson Addison-Wesley. All rights reserved.7–17 Table 7.4 Returns to Scale and Long-Run Costs

18. © 2007 Pearson Addison-Wesley. All rights reserved.7–18 Table 7.5 Shape of Average Cost Curves in Canadian Manufacturing

19. © 2007 Pearson Addison-Wesley. All rights reserved.7–19 Application (Page 205) Average Cost of Cement Firms

20. © 2007 Pearson Addison-Wesley. All rights reserved.7–20 Figure 7.9 Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

21. © 2007 Pearson Addison-Wesley. All rights reserved.7–21 Application (Page 208) Long-Run Cost Curves in Furniture Manufacturing and Oil Pipelines

22. © 2007 Pearson Addison-Wesley. All rights reserved.7–22 Application (Page 209) Long-Run Cost Curves in Furniture Manufacturing and Oil Pipelines

23. © 2007 Pearson Addison-Wesley. All rights reserved.7–23 Application (Page 210) Choosing an Ink-Jet or a Laser Printer

24. © 2007 Pearson Addison-Wesley. All rights reserved.7–24 Figure 7.10 Long-Run and Short-Run Expansion Paths

25. © 2007 Pearson Addison-Wesley. All rights reserved.7–25 Figure 7.11 Learning by Doing

26. © 2007 Pearson Addison-Wesley. All rights reserved.7–26 Figure 7.12 Joint Production