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AED 200 AGRICULTURAL ECONOMICS

Review. A. Average Fixed Cost: Afc = (Total Fixed Cost ) / (Output)B. Average Variable Cost: Avc = (Total Variable Cost ) / (Output )C. Average Total Cost: Atc = ( Total Cost ) / ( Output )D. Marginal Cost: Mc = (Chg In Total Cost)/( Chg In OutputE. Marginal Revenue: Mr = _Selling

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AED 200 AGRICULTURAL ECONOMICS

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    1. AED 200 AGRICULTURAL ECONOMICS PART 4: PRODUCTER DECISIONS WK 5-4: FIRMS’ SUPPLY

    2. Review A.  Average Fixed Cost: Afc = (Total Fixed Cost ) / (Output) B.  Average Variable Cost: Avc = (Total Variable Cost ) / (Output ) C.  Average Total Cost: Atc = ( Total Cost ) / ( Output ) D.  Marginal Cost: Mc = (Chg In Total Cost)/( Chg In Output E.  Marginal Revenue: Mr = _Selling Price

    3. F.  Optimum Level Of Output Is Where Marginal Revenue Equals Marginal Revenue G. Finding Optimum Point Graphically 1. Find Where Marginal Revenue   =    Marginal Cost   

    4. Part 4: Producers’ Decisions Wk 5-1: Production Functions Wk5-2: Optimum Production Pts Wk5-3: Cost Concepts WK5-4: FIRM SUPPLY Wk5-5: Ind & Market Supply Wk6-1: Supply Concepts Wk6-2: Supply Elasticity

    6. I. Review Of Cost Curves A. Step 1; Calculate & Graph Ave Fixed Cost

    7. Cost Curve Graph

    9. Cost Curve Graph

    11. Cost Curve Graph

    12. Go Back Up This Quantity Line Until You Reach The Average Total Cost Curve, Turn Left And Go To The Y Axis To Find Average Total Cost Per Unit

    13. Cost Curve Graph

    14. Go Back Up This Quantity Line Until You Reach The Average Total Cost Curve, Turn Left And Go To The Y Axis To Find Average Total Cost Per Unit

    15. Cost Curve Graph

    16. Total Cost = Average Cost Per Unit * Output Units Produced

    17. III. Impact Of Price Changes On Production

    18. Cost Curve Graph

    19. Iv. Firms’ Short Run Supply

    20. Cost Curve Graph

    23. VI. FIRMS' LONG RUN SUPPLY DECISIONS

    24. Cost Curve Graph

    25. VII ECONOMIC PROFITS 

    26. SUMMARY

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