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Published byChrystal Russell Modified over 9 years ago
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Cost Curves Average Costs Marginal Costs Long run and Short Run
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Cost Function In our example, the short-run cost function was: Variable costs Fixed costs
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Cost Curve
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Average Cost Function The short run average cost function: Average variable cost Average fixed cost
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Average Fixed Cost Curve
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Average Variable Cost Curve
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Why is AVC Increasing in y? Production function and AVC: Productions function features decreasing returns to scale wrt
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Average Cost Curve
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Marginal Cost Function The short run cost function: The short run marginal cost function:
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Marginal and Average Variable Cost Curves
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Marginal and Average Cost Curves
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Variable Costs and the Marginal Cost Curve
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Long Run In the long run there are no fixed factors of production Firm can freely adjust inputs Production costs are lower in the long run
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Long and Short Run Cost Curves
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Long and Short Run Average Cost Curves
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Long and Short Run Marginal Cost Curves
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Long and Short Run Cost Functions
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