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TVC

TC. TVC. Cost. TFC. Output. Introductory Economics Lecture 16. Cost Curves. TC. TVC. Cost. m. TFC. Output. Variable and Fixed Costs. Average cost curves. AC. Cost. AVC. AFC. Output. 0.67. 0.67. 1. 1.67. Average and marginal cost curves. Cost. MC. AC. 1.4. Q. O. 500.

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TVC

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  1. TC TVC Cost TFC Output

  2. Introductory Economics Lecture 16

  3. Cost Curves TC TVC Cost m TFC Output

  4. Variable and Fixed Costs

  5. Average cost curves AC Cost AVC AFC Output

  6. 0.67 0.67 1 1.67

  7. Average and marginal cost curves Cost MC AC 1.4 Q O 500

  8. Average and marginal physical product curves APP MPP 133 APP MPP L O 3

  9. Average and marginal cost curves Cost MC AC 1.4 Q O 500

  10. Long run cost curves LRTC Costs Costs LRAC LRTC LRAC O O Costs Output Output Diseconomies of scale Economies of scale LRTC LRAC O Output Constant Cost

  11. LTC Costs Costs LRAC LRMC LRAC O O Output Output Diseconomies of scale Economies of scale Costs Costs LRMC LTC LAVC LAVC O O Output Output Initial economies of scale then diseconomies of scale Constant Cost

  12. (a) Economies of scale Costs LRAC LRMC O Output Economies of scale

  13. (b) Diseconomies of scale LRMC Costs LRAC O Output Diseconomies of scale

  14. (c) Constant Costs Costs LRAC = LRMC O Output Constant costs

  15. (d) Initially economies of scale then diseconomies of scale Costs LRMC LAVC O Output Initially economies of scale then diseconomies of scale

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