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TVC

TC. TVC. Cost. TFC. Output. Cost Curves. TC. TVC. Cost. m. TFC. Output. 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. Average and marginal physical product curves. APP MPP.

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TVC

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  1. TC TVC Cost TFC Output

  2. Cost Curves TC TVC Cost m TFC Output

  3. Average cost curves AC Cost AVC AFC Output

  4. 0.67 0.67 1 1.67

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

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

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

  8. 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

  9. 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

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

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

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

  13. (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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