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1、CostsCostsShort-run costsTotal costShort-run costsTotal costTotal costs for firm XTFCOutput(Q)01234567TFC()1212121212121212Total costs for firm XTFCOutpuTotal costs for firm XTVCTFCOutput(Q)01234567TFC()1212121212121212TVC() 010162128406091Total costs for firm XTVCTFCOuTotal costs for firm XTCTVCTFC

2、Output(Q)01234567TFC()1212121212121212TVC() 010162128406091TC()12222833405272103 Total costs for firm XTCTVCTFCTotal costs for firm XTVCTFCDiminishing marginal returnsset in hereTCTotal costs for firm XTVCTFCDiShort-run costsMarginal cost= DTC/DQShort-run costsMarginal costDeriving marginal costsQ T

3、C MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103 10 6 5 7122031TCQCosts ()Deriving marginal costsQ TC Q TC MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103 10 6 5 7122031DTC = 12DQ = 1QCosts ()TCDeriving marginal costsQ TC MC10DTC = 12DQ = 1QCoQ TC MC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103 10 6 5 7122031MCDi

4、minishingreturns setin hereQCosts ()TCDeriving marginal costsQ TC MC10MCDiminishingQCosMCQCosts ()Deriving marginal costsMCQCosts ()Deriving marginal Short-run costsAverage cost= TC / QShort-run costsAverage costAFCQ TVC AVC0 0 -1 10 102 16 83 21 74 28 75 40 86 60 107 91 13QCosts ()AVCAFCQ TVC AVCQC

5、osts ()AVCAFCQ TC AC0 12 1 22 222 28 143 33 114 40 105 52 10.46 72 127 103 14.7QCosts ()AVCACAFCQ TC ACQCosts ()AVCAQ TC MC AC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103 10 6 5 7122031MCAC -2214111010.41214.7QCosts ()Q TC MC AC10MCAC -QCosts Q TC MC AC0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103 10 6 5 712

6、2031MCAC -2214111010.41214.7QCosts ()Q TC MC AC10MCAC -QCosts Long-run costsLong-run costsLong-run costsLong-run costsAlternative long-run average cost curvesOutputOCosts(a) Economies of scaleLRACAlternative long-run average cAlternative long-run average cost curvesOutputOCosts(b) Diseconomies of sc

7、aleLRACAlternative long-run average cAlternative long-run average cost curvesOutputOCosts(c) Constant costsLRACAlternative long-run average cA typical long-run average cost curveOutputOCostsLRACA typical long-run average cosA typical long-run average cost curveOutputOCostsLRACEconomiesof scaleConsta

8、ntcostsDiseconomiesof scaleA typical long-run average cosLong-run average and marginal costsOutputOCosts(a) Economies of scaleLRACLRMCLong-run average and marginal OutputOCosts(b) Diseconomies of scaleLRACLong-run average and marginal costsLRMCOutputOCosts(b) Diseconomies oOutputOCosts(c) Constant c

9、ostsLRAC = LRMCLong-run average and marginal costsOutputOCosts(c) Constant costsOutputOCosts(d) Initial economies of scale, then diseconomies of scaleLong-run average and marginal costsLRMCLRACOutputOCosts(d) Initial economLong-run costsRelationship between short-runand long-run AC curvesLong-run co

10、stsRelationship betDeriving long-run average cost curves: factories of fixed sizeSRAC1CostsOutputO1 factoryDeriving long-run average costDeriving long-run average cost curves: factories of fixed sizeSRAC1SRAC2CostsOutputO2 factoriesDeriving long-run average costDeriving long-run average cost curves:

11、 factories of fixed sizeSRAC1SRAC3SRAC2CostsOutputO3 factoriesDeriving long-run average costDeriving long-run average cost curves: factories of fixed sizeSRAC1SRAC3SRAC2SRAC4SRAC5CostsOutputO5 factories4 factoriesDeriving long-run average costDeriving long-run average cost curves: factories of fixed sizeSRAC1SRAC3SRAC2SRAC4SRAC5LRACCostsOutputODeriving long-run average costDeriving a long-run average cost curve: choice of factory sizeCostsOutp

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