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1、Costs,Short-run costs,Total cost,Total costs for firm X,TFC,Output(Q)01234567,TFC()1212121212121212,Total costs for firm X,TVC,TFC,Output(Q)01234567,TFC()1212121212121212,TVC()010162128406091,Total costs for firm X,TC,TVC,TFC,Output(Q)01234567,TFC()1212121212121212,TVC()010162128406091,TC()122228334
2、05272103,Total costs for firm X,TVC,TFC,Diminishing marginal returnsset in here,TC,Short-run costs,Marginal cost=DTC/DQ,Deriving marginal costs,Q TC MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7122031,TC,Q,Costs(),Q TC MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7122031,DTC=12,DQ=1,Q,Cos
3、ts(),TC,Deriving marginal costs,Q TC MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7122031,MC,Diminishingreturns setin here,Q,Costs(),TC,Deriving marginal costs,MC,Q,Costs(),Deriving marginal costs,Short-run costs,Average cost=TC/Q,AFC,Q TVC AVC0 0-1 10 102 16 83 21 74 28 75 40 86 60 107 91 13,Q
4、,Costs(),AVC,AFC,Q TC AC0 12 1 22 222 28 143 33 114 40 105 52 10.46 72 127 103 14.7,Q,Costs(),AVC,AC,Q TC MC AC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7122031,MC,AC,-2214111010.41214.7,Q,Costs(),Q TC MC AC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7122031,MC,AC,-2214111010.41214.7,Q,Cos
5、ts(),Long-run costs,Long-run costs,Alternative long-run average cost curves,Output,O,Costs,(a)Economies of scale,LRAC,Alternative long-run average cost curves,Output,O,Costs,(b)Diseconomies of scale,LRAC,Alternative long-run average cost curves,Output,O,Costs,(c)Constant costs,LRAC,A typical long-ru
6、n average cost curve,Output,O,Costs,LRAC,A typical long-run average cost curve,Output,O,Costs,LRAC,Economiesof scale,Constantcosts,Diseconomiesof scale,Long-run average and marginal costs,Output,O,Costs,(a)Economies of scale,LRAC,LRMC,Output,O,Costs,(b)Diseconomies of scale,LRAC,Long-run average and
7、 marginal costs,LRMC,Output,O,Costs,(c)Constant costs,LRAC=LRMC,Long-run average and marginal costs,Output,O,Costs,(d)Initial economies of scale,then diseconomies of scale,Long-run average and marginal costs,LRMC,LRAC,Long-run costs,Relationship between short-runand long-run AC curves,Deriving long-
8、run average cost curves:factories of fixed size,SRAC1,Costs,Output,O,1 factory,Deriving long-run average cost curves:factories of fixed size,SRAC1,SRAC2,Costs,Output,O,2 factories,Deriving long-run average cost curves:factories of fixed size,SRAC1,SRAC3,SRAC2,Costs,Output,O,3 factories,Deriving long
9、-run average cost curves:factories of fixed size,SRAC1,SRAC3,SRAC2,SRAC4,SRAC5,Costs,Output,O,5 factories,4 factories,Deriving long-run average cost curves:factories of fixed size,SRAC1,SRAC3,SRAC2,SRAC4,SRAC5,LRAC,Costs,Output,O,Deriving a long-run average cost curve:choice of factory size,Costs,Output,O,Examples of short-runaverage cost curves,Deriving a long-run average cost curve:choice of factory size,LRAC,Costs,Output,O,
