Costs
•Download as PPT, PDF•
1 like•487 views
There are two types of economic costs: explicit costs which are actual expenditures and implicit costs which are the value of factors owned by the firm. Short-run costs include fixed costs which do not vary with output and variable costs which do vary with output. Total cost is the sum of fixed and variable costs. Marginal cost is the change in total cost from producing one additional unit of output. Average costs include average fixed cost, average variable cost, and average total cost.
Report
Share
Report
Share
![Economic cost: ,[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
Cost.1
The document discusses the costs of production for a firm. It defines fixed costs as costs that do not vary with output, variable costs as costs that vary with output, and total costs as the sum of fixed and variable costs. Marginal cost is defined as the change in total cost from producing one additional unit of output. In the short run, costs are classified as either fixed or variable, but in the long run most costs can become variable. Cost curves like average total cost, average variable cost, and marginal cost are discussed and how they relate to costs and production levels.
Cost
The document discusses the costs of production for firms. It defines different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. Fixed costs remain constant regardless of the amount of output, while variable costs change with output. Total cost is the sum of fixed and variable costs. The document also discusses how cost curves like total cost, average cost, and marginal cost shift when costs or technology change.
Production of Cost
This document discusses production costs from the perspective of a group presenting on the topic. It defines costs and production costs, outlines the main types of costs including fixed, variable, average and marginal costs. It provides examples and formulas to calculate these different costs. The document also discusses elements that make up production costs, the relationship between different cost curves, how to estimate costs, and provides a summary of how costs and profits are considered from an economic and accounting perspective.
Cost computation
This document discusses different types of costs involved in production. It defines fixed costs as expenses that cannot be changed in the short run, like rent and insurance, and variable costs as expenses that vary with output, such as raw materials and wages. Total cost is the sum of total fixed and total variable costs. As output increases, average fixed cost falls while average variable cost initially falls then rises, resulting in a U-shaped average total cost curve. Marginal cost is the change in total cost from producing an additional unit of output. The point where marginal cost equals average cost minimizes average total cost. Controlling costs is essential for business success.
Theory of cost
This document discusses different types of costs related to production. It defines money cost, nominal cost, real cost, opportunity cost, implicit cost, explicit cost, accounting cost, social cost, and entrepreneur's cost. It also covers classification of costs, elements of costs, short-run costs including fixed, variable, total, average and marginal costs. Finally, it discusses long-run cost curves including long-run average cost and long-run marginal cost curves.
Lecture 5 cost analysis
This document discusses different types of costs involved in production, including:
- Explicit costs which are actual payments, versus implicit costs which are work done without monetary payment
- Private costs accrued by firms/individuals engaged in an activity, versus external/social costs passed to society
- Sunk costs which cannot be recovered and should be ignored in decisions
- Money costs which are payments to factors of production
- Opportunity cost as the next best alternative foregone in producing something
It also explains concepts like fixed costs, variable costs, total costs, average costs and marginal cost, and how they relate in the short-run and long-run, including economies and diseconomies of scale. Diagrams are used to depict
Costtheory by daniyal khan
This document provides an overview of cost theory concepts. It defines different types of costs including opportunity costs, explicit costs, and implicit costs. It also discusses costs in the short run vs long run. Key cost concepts explained include total costs, fixed costs, variable costs, average costs, and marginal costs. Graphs are provided to illustrate the relationships between costs and output, including total cost curves, average cost curves, and how marginal costs change with diminishing returns.
Theory of cost .prasanth
This document discusses different types of costs in economics including total, fixed, variable, average, and marginal costs. It defines each type of cost using mathematical formulas. Total cost is the sum of total fixed costs and total variable costs. As production volume increases, average fixed cost decreases in a rectangular hyperbola shape. Marginal cost is the change in total cost from producing one additional unit and the marginal cost curve is U-shaped, initially high and then decreasing to a minimum point before rising again. The document provides a numerical example to illustrate the different cost concepts.
Recommended
Cost.1
The document discusses the costs of production for a firm. It defines fixed costs as costs that do not vary with output, variable costs as costs that vary with output, and total costs as the sum of fixed and variable costs. Marginal cost is defined as the change in total cost from producing one additional unit of output. In the short run, costs are classified as either fixed or variable, but in the long run most costs can become variable. Cost curves like average total cost, average variable cost, and marginal cost are discussed and how they relate to costs and production levels.
Cost
The document discusses the costs of production for firms. It defines different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. Fixed costs remain constant regardless of the amount of output, while variable costs change with output. Total cost is the sum of fixed and variable costs. The document also discusses how cost curves like total cost, average cost, and marginal cost shift when costs or technology change.
Production of Cost
This document discusses production costs from the perspective of a group presenting on the topic. It defines costs and production costs, outlines the main types of costs including fixed, variable, average and marginal costs. It provides examples and formulas to calculate these different costs. The document also discusses elements that make up production costs, the relationship between different cost curves, how to estimate costs, and provides a summary of how costs and profits are considered from an economic and accounting perspective.
Cost computation
This document discusses different types of costs involved in production. It defines fixed costs as expenses that cannot be changed in the short run, like rent and insurance, and variable costs as expenses that vary with output, such as raw materials and wages. Total cost is the sum of total fixed and total variable costs. As output increases, average fixed cost falls while average variable cost initially falls then rises, resulting in a U-shaped average total cost curve. Marginal cost is the change in total cost from producing an additional unit of output. The point where marginal cost equals average cost minimizes average total cost. Controlling costs is essential for business success.
Theory of cost
This document discusses different types of costs related to production. It defines money cost, nominal cost, real cost, opportunity cost, implicit cost, explicit cost, accounting cost, social cost, and entrepreneur's cost. It also covers classification of costs, elements of costs, short-run costs including fixed, variable, total, average and marginal costs. Finally, it discusses long-run cost curves including long-run average cost and long-run marginal cost curves.
Lecture 5 cost analysis
This document discusses different types of costs involved in production, including:
- Explicit costs which are actual payments, versus implicit costs which are work done without monetary payment
- Private costs accrued by firms/individuals engaged in an activity, versus external/social costs passed to society
- Sunk costs which cannot be recovered and should be ignored in decisions
- Money costs which are payments to factors of production
- Opportunity cost as the next best alternative foregone in producing something
It also explains concepts like fixed costs, variable costs, total costs, average costs and marginal cost, and how they relate in the short-run and long-run, including economies and diseconomies of scale. Diagrams are used to depict
Costtheory by daniyal khan
This document provides an overview of cost theory concepts. It defines different types of costs including opportunity costs, explicit costs, and implicit costs. It also discusses costs in the short run vs long run. Key cost concepts explained include total costs, fixed costs, variable costs, average costs, and marginal costs. Graphs are provided to illustrate the relationships between costs and output, including total cost curves, average cost curves, and how marginal costs change with diminishing returns.
Theory of cost .prasanth
This document discusses different types of costs in economics including total, fixed, variable, average, and marginal costs. It defines each type of cost using mathematical formulas. Total cost is the sum of total fixed costs and total variable costs. As production volume increases, average fixed cost decreases in a rectangular hyperbola shape. Marginal cost is the change in total cost from producing one additional unit and the marginal cost curve is U-shaped, initially high and then decreasing to a minimum point before rising again. The document provides a numerical example to illustrate the different cost concepts.
Unit iii cost and revenue
Unit III discusses cost and revenue concepts. There are several types of costs including fixed costs that do not vary with output, variable costs that depend on output, average costs that are total costs divided by units of output, and marginal costs which are the change in total costs from producing one additional unit of output. Revenue refers to the value that customers place on a firm's products or services. A cost function describes the relationship between a firm's total costs and its level of output. Key determinants of a firm's costs include input prices, size of plant, rate of output, and efficiency.
Cost and revenue
The document discusses different types of costs including variable costs, fixed costs, total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average total costs, marginal costs, and marginal revenue. It defines each type of cost and revenue and provides the relevant formulas to calculate them.
Economics
presentation prepared by 2011 humanities batch under the leadership of mathew j. vettickal
under the super vision of sudheesh plathottam
Cost Classification(fixed cost and variable cost) and BEP
This document discusses different types of costs in cost accounting:
1) Costs are classified as fixed costs, variable costs, or semi-variable (mixed) costs based on how they change with production volume. Fixed costs remain constant regardless of production volume, while variable costs change directly with production volume.
2) Fixed costs are further divided into committed fixed costs which are difficult to change in the short-run, and discretionary fixed costs which management can more easily control.
3) Break-even analysis examines the relationship between costs and revenue to determine the production volume needed to cover total costs. The break-even point is where total revenue equals total costs. Contribution margin analysis focuses on the profit contribution of
11 theory of cost
This document outlines the theory of cost for a firm. It discusses key cost concepts like total cost, fixed cost, variable cost, marginal cost, average cost, and how they relate in the short run and long run. In the short run, total cost is the sum of total fixed cost and total variable cost. Marginal cost is the change in total cost from producing one more unit. Average cost is total cost divided by units of output. In the long run, all factors can be varied, and the long run average cost curve shows the minimum average cost for different levels of production.
Theory of the firm
This document discusses key concepts related to the theory of the firm including costs, revenues, profits, and output decisions. It defines different types of costs like fixed, variable, average, and marginal costs. It also explains short-run and long-run periods and concepts like economies and diseconomies of scale. The document outlines how profits, revenues and costs determine a firm's optimal output level and whether it earns normal profits or abnormal profits.
Presentation on Cost and Revenue
This document presents information about costs and revenues to Mr. Abdur Rab and a group of students. It defines total cost, fixed costs, and variable costs. It also defines and provides graphical representations of total cost, total variable cost, total fixed cost, marginal cost, average total cost, average variable cost, and average fixed cost. The document further discusses different types of costs, cost concepts, revenue types including total revenue, average revenue and marginal revenue, and provides graphical representations of total revenue, average revenue and marginal revenue.
A2 Micro: Fixed and Variable Costs
Revision presentation on fixed and variable costs of production - more revision notes available from www.tutor2u.net
Cost of Production
This document discusses different types of costs involved in production - implicit costs, explicit costs, fixed costs, and variable costs. It defines total cost, average cost, average fixed cost, average variable cost, and marginal cost. The relationship between these different costs is explained with graphs. Economies and diseconomies of scale are also summarized, along with how average costs change in the short run and long run based on the scale of production.
firm cost of production
1) A firm is an organization that employs resources to produce goods or services with the aim of making a profit. A firm's cost of production is the total expenditures required to produce a specific level of output.
2) Costs include explicit costs like wages that are directly paid, and implicit costs like foregone opportunity that is not directly paid. Short-run costs are divided into fixed costs that do not vary with output and variable costs that do vary.
3) Per unit costs include average fixed cost, average variable cost, average cost, and marginal cost which is the change in total cost from an additional unit of output. These concepts and cost curves are used to analyze costs of production in the short and long
Output and costs (2)
The document discusses short-run and long-run time frames. In the short-run, some resources like capital are fixed, while variable inputs like labor can be adjusted. In the long-run, all resources can be varied. It also discusses concepts like total, average, and marginal product curves; total, average, and marginal costs; as well as economies and diseconomies of scale. Constant returns to scale occur when average costs remain constant as output increases in the long-run. Minimum efficient scale is the lowest point on the long-run average cost curve, where costs are lowest for a given output level.
Cost Concept
The document discusses cost concepts and their application. It defines different types of costs such as fixed costs, variable costs, opportunity costs, sunk costs, explicit costs, and implicit costs. It also discusses total cost, which is the sum of fixed and variable costs. The total cost equation and linear cost equation are presented. Examples are provided to illustrate calculating total production costs, break-even points, and profits using the total cost equation. Location selection for facilities is also discussed, with factors like proximity to markets and suppliers, labor availability, and costs being considered in a break-even analysis.
Cost/Revenue Analysis
The document discusses key concepts related to cost and revenue analysis, including:
- Fixed and variable inputs in the short-run vs long-run.
- The production function and how it relates inputs to output.
- Marginal product and the law of diminishing returns.
- Short-run and long-run costs including total, average, and marginal costs.
- Revenue analysis including total, average, and marginal revenue.
- Break-even and shutdown points for firms.
- Economies and diseconomies of scale in the long-run.
COST
This document defines and explains various cost concepts including: total fixed costs, average fixed costs, total variable costs, average variable costs, total costs, average total costs, and marginal costs. It discusses the differences between fixed and variable costs. Typical total, average, and marginal cost curves are shown and explained. The document also covers economies and diseconomies of scale, and internal and external economies.
Theory of cost final
The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
ECONOMICS COST CONCEPT
This document defines key concepts related to cost, including:
- Explicit costs refer to actual money spent on inputs, while implicit costs refer to the estimated value of owner-supplied inputs.
- Cost function studies the relationship between input costs and output levels.
- Short-run costs include total, fixed, and variable costs. Total cost equals fixed plus variable cost. Variable costs change with output while fixed costs do not.
- Marginal cost refers to the change in total cost from producing one additional unit of output.
Fixed And Variable Costs
Businesses have both fixed and variable costs. Fixed costs remain the same regardless of production levels, such as rent expenses. Variable costs change based on production, such as materials. Total costs are the sum of fixed and variable costs. Average cost is calculated by dividing total costs by units produced to determine per unit costs. Graphs can show how total costs and average costs change as production increases or decreases.
Cost theory
The document discusses cost theory concepts including opportunity costs, explicit and implicit costs, short-run and long-run costs, fixed and variable costs, total cost, average cost, and marginal cost. It explains how average, marginal, and total costs are related and how their curves are shaped. Specifically, it summarizes that marginal cost and short-run average cost curves slope upward due to diminishing returns, while the long-run average cost curve is U-shaped as economies of scale initially lower costs but diseconomies later raise them. The envelope relationship shows that short-run average costs are always above the minimum long-run average cost.
Business Economics 07 Theory of Cost
The document discusses concepts of costs including:
- Short-run costs like total, fixed, variable and average costs and how they change with different levels of output. Marginal cost is also examined.
- Long-run costs and how average costs change with scale of production due to economies and diseconomies of scale. The minimum efficient scale is discussed.
- Empirical studies on cost behavior in both the short-run and long-run are summarized for different industries.
Introduction1
This document discusses three basic economic questions about using scarce resources: what to produce, how to produce, and for whom to produce. It also discusses production possibility frontiers (PPF), which show the maximum amounts of two goods an economy can produce given available resources and technology. PPFs illustrate the concept of opportunity cost, which is the amount of one good that must be sacrificed to produce more of the other good.
Mono
This document summarizes key characteristics of monopoly and monopolistic competition. It discusses how a monopoly is a single seller that serves the entire market, has market power through a downward sloping demand curve, and there is no distinction between the firm and industry. Monopolistic competition involves many firms, product differentiation, free entry and exit in the long run, and firms having some market power in the short run but not earning pure profits in the long run. Oligopoly is characterized by a small number of interdependent firms that can exert collective control over prices and supply in the market.
Basic elements of supply and demand
This document discusses the basic elements of supply and demand. It defines demand and supply schedules and curves, and the laws of demand and supply. It also outlines several factors that affect supply and demand curves, such as changes in tastes, income, prices of related goods, technology, and government policies. The document also discusses market equilibrium and how shifts in supply and demand curves impact equilibrium price and quantity. Specifically, it explains how a rightward shift in demand or supply results in a higher equilibrium price, while a leftward shift decreases the equilibrium price.
More Related Content
What's hot
Unit iii cost and revenue
Unit III discusses cost and revenue concepts. There are several types of costs including fixed costs that do not vary with output, variable costs that depend on output, average costs that are total costs divided by units of output, and marginal costs which are the change in total costs from producing one additional unit of output. Revenue refers to the value that customers place on a firm's products or services. A cost function describes the relationship between a firm's total costs and its level of output. Key determinants of a firm's costs include input prices, size of plant, rate of output, and efficiency.
Cost and revenue
The document discusses different types of costs including variable costs, fixed costs, total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average total costs, marginal costs, and marginal revenue. It defines each type of cost and revenue and provides the relevant formulas to calculate them.
Economics
presentation prepared by 2011 humanities batch under the leadership of mathew j. vettickal
under the super vision of sudheesh plathottam
Cost Classification(fixed cost and variable cost) and BEP
This document discusses different types of costs in cost accounting:
1) Costs are classified as fixed costs, variable costs, or semi-variable (mixed) costs based on how they change with production volume. Fixed costs remain constant regardless of production volume, while variable costs change directly with production volume.
2) Fixed costs are further divided into committed fixed costs which are difficult to change in the short-run, and discretionary fixed costs which management can more easily control.
3) Break-even analysis examines the relationship between costs and revenue to determine the production volume needed to cover total costs. The break-even point is where total revenue equals total costs. Contribution margin analysis focuses on the profit contribution of
11 theory of cost
This document outlines the theory of cost for a firm. It discusses key cost concepts like total cost, fixed cost, variable cost, marginal cost, average cost, and how they relate in the short run and long run. In the short run, total cost is the sum of total fixed cost and total variable cost. Marginal cost is the change in total cost from producing one more unit. Average cost is total cost divided by units of output. In the long run, all factors can be varied, and the long run average cost curve shows the minimum average cost for different levels of production.
Theory of the firm
This document discusses key concepts related to the theory of the firm including costs, revenues, profits, and output decisions. It defines different types of costs like fixed, variable, average, and marginal costs. It also explains short-run and long-run periods and concepts like economies and diseconomies of scale. The document outlines how profits, revenues and costs determine a firm's optimal output level and whether it earns normal profits or abnormal profits.
Presentation on Cost and Revenue
This document presents information about costs and revenues to Mr. Abdur Rab and a group of students. It defines total cost, fixed costs, and variable costs. It also defines and provides graphical representations of total cost, total variable cost, total fixed cost, marginal cost, average total cost, average variable cost, and average fixed cost. The document further discusses different types of costs, cost concepts, revenue types including total revenue, average revenue and marginal revenue, and provides graphical representations of total revenue, average revenue and marginal revenue.
A2 Micro: Fixed and Variable Costs
Revision presentation on fixed and variable costs of production - more revision notes available from www.tutor2u.net
Cost of Production
This document discusses different types of costs involved in production - implicit costs, explicit costs, fixed costs, and variable costs. It defines total cost, average cost, average fixed cost, average variable cost, and marginal cost. The relationship between these different costs is explained with graphs. Economies and diseconomies of scale are also summarized, along with how average costs change in the short run and long run based on the scale of production.
firm cost of production
1) A firm is an organization that employs resources to produce goods or services with the aim of making a profit. A firm's cost of production is the total expenditures required to produce a specific level of output.
2) Costs include explicit costs like wages that are directly paid, and implicit costs like foregone opportunity that is not directly paid. Short-run costs are divided into fixed costs that do not vary with output and variable costs that do vary.
3) Per unit costs include average fixed cost, average variable cost, average cost, and marginal cost which is the change in total cost from an additional unit of output. These concepts and cost curves are used to analyze costs of production in the short and long
Output and costs (2)
The document discusses short-run and long-run time frames. In the short-run, some resources like capital are fixed, while variable inputs like labor can be adjusted. In the long-run, all resources can be varied. It also discusses concepts like total, average, and marginal product curves; total, average, and marginal costs; as well as economies and diseconomies of scale. Constant returns to scale occur when average costs remain constant as output increases in the long-run. Minimum efficient scale is the lowest point on the long-run average cost curve, where costs are lowest for a given output level.
Cost Concept
The document discusses cost concepts and their application. It defines different types of costs such as fixed costs, variable costs, opportunity costs, sunk costs, explicit costs, and implicit costs. It also discusses total cost, which is the sum of fixed and variable costs. The total cost equation and linear cost equation are presented. Examples are provided to illustrate calculating total production costs, break-even points, and profits using the total cost equation. Location selection for facilities is also discussed, with factors like proximity to markets and suppliers, labor availability, and costs being considered in a break-even analysis.
Cost/Revenue Analysis
The document discusses key concepts related to cost and revenue analysis, including:
- Fixed and variable inputs in the short-run vs long-run.
- The production function and how it relates inputs to output.
- Marginal product and the law of diminishing returns.
- Short-run and long-run costs including total, average, and marginal costs.
- Revenue analysis including total, average, and marginal revenue.
- Break-even and shutdown points for firms.
- Economies and diseconomies of scale in the long-run.
COST
This document defines and explains various cost concepts including: total fixed costs, average fixed costs, total variable costs, average variable costs, total costs, average total costs, and marginal costs. It discusses the differences between fixed and variable costs. Typical total, average, and marginal cost curves are shown and explained. The document also covers economies and diseconomies of scale, and internal and external economies.
Theory of cost final
The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
ECONOMICS COST CONCEPT
This document defines key concepts related to cost, including:
- Explicit costs refer to actual money spent on inputs, while implicit costs refer to the estimated value of owner-supplied inputs.
- Cost function studies the relationship between input costs and output levels.
- Short-run costs include total, fixed, and variable costs. Total cost equals fixed plus variable cost. Variable costs change with output while fixed costs do not.
- Marginal cost refers to the change in total cost from producing one additional unit of output.
Fixed And Variable Costs
Businesses have both fixed and variable costs. Fixed costs remain the same regardless of production levels, such as rent expenses. Variable costs change based on production, such as materials. Total costs are the sum of fixed and variable costs. Average cost is calculated by dividing total costs by units produced to determine per unit costs. Graphs can show how total costs and average costs change as production increases or decreases.
Cost theory
The document discusses cost theory concepts including opportunity costs, explicit and implicit costs, short-run and long-run costs, fixed and variable costs, total cost, average cost, and marginal cost. It explains how average, marginal, and total costs are related and how their curves are shaped. Specifically, it summarizes that marginal cost and short-run average cost curves slope upward due to diminishing returns, while the long-run average cost curve is U-shaped as economies of scale initially lower costs but diseconomies later raise them. The envelope relationship shows that short-run average costs are always above the minimum long-run average cost.
Business Economics 07 Theory of Cost
The document discusses concepts of costs including:
- Short-run costs like total, fixed, variable and average costs and how they change with different levels of output. Marginal cost is also examined.
- Long-run costs and how average costs change with scale of production due to economies and diseconomies of scale. The minimum efficient scale is discussed.
- Empirical studies on cost behavior in both the short-run and long-run are summarized for different industries.
What's hot (19)
Cost Classification(fixed cost and variable cost) and BEP
Cost Classification(fixed cost and variable cost) and BEP
Viewers also liked
Introduction1
This document discusses three basic economic questions about using scarce resources: what to produce, how to produce, and for whom to produce. It also discusses production possibility frontiers (PPF), which show the maximum amounts of two goods an economy can produce given available resources and technology. PPFs illustrate the concept of opportunity cost, which is the amount of one good that must be sacrificed to produce more of the other good.
Mono
This document summarizes key characteristics of monopoly and monopolistic competition. It discusses how a monopoly is a single seller that serves the entire market, has market power through a downward sloping demand curve, and there is no distinction between the firm and industry. Monopolistic competition involves many firms, product differentiation, free entry and exit in the long run, and firms having some market power in the short run but not earning pure profits in the long run. Oligopoly is characterized by a small number of interdependent firms that can exert collective control over prices and supply in the market.
Basic elements of supply and demand
This document discusses the basic elements of supply and demand. It defines demand and supply schedules and curves, and the laws of demand and supply. It also outlines several factors that affect supply and demand curves, such as changes in tastes, income, prices of related goods, technology, and government policies. The document also discusses market equilibrium and how shifts in supply and demand curves impact equilibrium price and quantity. Specifically, it explains how a rightward shift in demand or supply results in a higher equilibrium price, while a leftward shift decreases the equilibrium price.
Demand and consumer behavior
1. The document discusses concepts related to consumer demand and behavior including utility, diminishing marginal utility, individual and market demand curves, consumer welfare, budget constraints, indifference curves, and the marginal rate of substitution.
2. It provides numerical examples to illustrate concepts like total utility, marginal utility, and deriving demand curves.
3. Key topics covered include the law of diminishing marginal utility, equimarginal principle, consumer surplus, changes to budget lines from changes in income and prices, properties of indifference curves, and the slope of indifference curves representing the marginal rate of substitution.
Chapter one 1
This document provides an overview of key economic concepts covered in Chapter One. It defines economics as the study of how societies use scarce resources to produce and distribute goods and services. Economics has two branches - microeconomics focuses on individual entities like households and firms, while macroeconomics examines the overall economy. The production possibility frontier is used to illustrate scarcity, tradeoffs, and how economic growth can shift the frontier outwards, allowing for more consumption possibilities. Opportunity cost refers to the next best alternative given up in order to pursue a particular option.
Limits, alternatives, and choices
This document provides an overview of key concepts in economics, including:
1) Economics studies how individuals and societies make choices in the context of scarcity of resources and unlimited wants. It uses theories, models, and the scientific method to understand economic behavior.
2) Microeconomics analyzes the decisions of individual agents like consumers and firms, while macroeconomics looks at aggregates for the overall economy.
3) The production possibilities model and curve illustrate the concept of opportunity cost - that increasing production of one good requires reducing production of the other due to scarce resources. The law of increasing opportunity costs holds that moving along the PPC, each additional unit of a good requires greater and greater sacrifice of the other.
Chapter one 1
This document provides an overview of key economic concepts covered in Chapter One. It defines economics as the study of how societies use scarce resources to produce and distribute goods and services. Economics has two branches - microeconomics focuses on individual entities like households and firms, while macroeconomics examines the overall economy. The production possibility frontier is used to illustrate scarcity, tradeoffs, and how economic growth can shift the frontier outwards, allowing for more consumption possibilities. Opportunity cost refers to the next best alternative given up in order to pursue a particular option.
Chapter 2(1)
This chapter discusses the modern mixed economy. It begins by defining a market as a mechanism that allows buyers and sellers to set prices and exchange goods. It then explains how markets solve the three fundamental economic questions of what, how, and for whom through the interaction of consumers and producers. While the invisible hand of the market guides much of the economy, the visible hand of government also plays an important role by increasing efficiency, promoting equity, and ensuring stability. Government works to address market failures from monopolies, externalities, and public goods through regulations and tax-funded programs. The chapter establishes the foundation for understanding the roles of markets and government in modern economies.
Chapter 4: Elasticity
Elasticity refers to the rate of change of quantity demanded or supplied with respect to changes in factors like price. There are different types of elasticity including price elasticity of demand, which measures responsiveness of quantity demanded to price changes, and price elasticity of supply, which measures responsiveness of quantity supplied to price changes. Elasticity can take on different values that indicate the degree or characteristics of responsiveness, such as perfectly inelastic, inelastic, unitary, or perfectly elastic. Factors like availability of substitutes and time period can impact price elasticity.
Macro first day class
This document outlines the syllabus for a Principles of Macroeconomics course taught by Dr. Jean-Pierre Mulumba. It provides details on the course schedule, assignments, grading, and policies. The course will introduce macroeconomic concepts like national income, economic growth, monetary and fiscal policy. It will meet on Mondays and Wednesdays and include lectures, discussions, quizzes, exams, and a group presentation project. The goal is for students to learn economic perspectives and tools to analyze problems.
Economics chapter 4
This document summarizes key concepts in economics about supply. It defines supply as the quantity of goods producers are willing to offer at various prices, while quantity supplied refers to the amount offered at a certain price. The law of supply states that supply increases with price. Supply schedules and curves illustrate the relationship between price and quantity supplied. Supply can shift due to determinants like resource prices, technology, or competition. Taxes differ from subsidies in that subsidies involve government payments to businesses, while taxes involve businesses paying the government. Producers consider productivity and costs like fixed, variable, and marginal costs when making supply decisions.
Economics: Chapter 4
This document summarizes key concepts about demand, including:
1) The law of demand states that as price increases, quantity demanded decreases, due to the substitution and income effects.
2) A demand schedule shows the relationship between price and quantity demanded, while a demand curve graphs this relationship.
3) A shift in the demand curve occurs when non-price factors, like income, tastes, or expectations change, affecting the entire curve.
4) Elasticity measures how responsive quantity demanded is to price changes, and depends on availability of substitutes, importance of the good, and time. It helps firms set prices to maximize total revenue.
Portugalequestre catalogo 2011
This document appears to be a catalog listing various types of horse headgear and accessories for sale. It includes items such as nylon, leather, and cord headstalls and bridles in various styles, sizes, and colors. Price ranges from around 4 euros for basic nylon headstalls to over 300 euros for more elaborate bridles. The catalog is primarily in Portuguese but also includes some English-style tack. It provides contact information for the company in Portugal.
Global laboratory
The document discusses SUNY Oswego's Global Laboratory program, which provides undergraduate students hands-on research experiences in international laboratories. It aims to prepare globally engaged STEM researchers and increase scientific collaboration worldwide. Students spend 6-8 weeks in labs on all continents, advancing knowledge and designing solutions. Evaluation measures intellectual and global perspective development. Funding supports 15-20 students annually in locations like Brazil, Taiwan, Congo, and Iceland.
Meva biografia angles xavicid
I was born in Terrassa, Spain on February 5, 1997. I have a younger sister named Cristina who is 12 years old. I enjoy playing football, spending time with friends, and being with family. As a child I attended Ceip Abat Marcet school and now go to Ies Torre Del Palau school. I started playing football as a kid with Terrassa F.C. and later played futsal for Bon Aire and now play for Acció Sant Martí futsal.
Beam Imaging System for IAC RadiaBeam THz Project
The document describes an EPICS, MATLAB, and GigE CCD camera-based beam imaging system used for the IAC-RadiaBeam THz project. The system allows for real-time beam observation, tuning of THz radiation production, and measurement of transverse beam emittance. It consists of a YAG screen, Prosilica GC1290 GigE CCD camera, LED illuminator, and optics components. Beam images are acquired in real-time using SampleViewer software and remotely using EPICS and MATLAB. Beam images are analyzed in MATLAB to measure beam size and transverse emittance.
7 ingredients to search engine optimisation (SEO) for Joomla
Presentation for the Sydney Joomla User Group talking about search engine optimisation (SEO), microdata for Joomla and AuthorRank as a influencing factor to your website's rankings.
kan resume
G. Kanmani has over 7 years of experience in operations management, customer service, and healthcare coordination. She currently works as the Operations Manager at Nova IVI Fertility in Chennai, where she oversees the customer care department and assists with operations. Previously, she worked as an IVF Coordinator and Executive at Nova IVI Fertility and as a Process Associate at Fidelity Investments, where she performed tasks such as entitlement reconciliation and securities lending verification. She holds an MBA from Assan Memorial Institute of Management Studies and a BBA from Kumararani Meena Muthiah College of Arts and Science.
Viewers also liked (20)
7 ingredients to search engine optimisation (SEO) for Joomla
7 ingredients to search engine optimisation (SEO) for Joomla
Similar to Costs
Economics 4
The document discusses different types of costs in production including:
1. Cost of production refers to the total expenses incurred to produce a commodity, including costs of inputs, labor, technology, and efficiency.
2. Money costs include expenses like materials, wages, machinery, depreciation, interest, and profit. Real costs refer to the efforts and sacrifices of producers.
3. Opportunity cost is the next best alternative forgone in producing a good. For a farmer, it is the output of potatoes not produced by using resources for wheat.
Week 4 slides 1 [core]
This document discusses key concepts related to a firm's supply decision including production functions, costs, and profit maximization. It explains that in the short-run a firm has fixed inputs and variable inputs. As the firm increases the variable input, it initially experiences increasing returns to scale but eventually diminishing returns as shown by a downward sloping marginal product curve. The document also discusses short-run costs including fixed costs, variable costs, average costs and marginal costs and how their respective curves are shaped.
Economic Presentation: Cost Theory and Analysis
The document discusses different types of costs including:
1. Accounting costs include expenses incurred during production adjusted for depreciation, while economic costs include explicit payments to factors of production as well as implicit opportunity costs.
2. In the short-run, costs are classified as fixed, variable, total, average fixed, average variable, and marginal based on their relationship to changing output levels.
3. In the long-run, all factors are variable and long-run total, average, and marginal cost curves are defined based on minimum cost production at different output scales.
Managerial Economics
Cost and production analysis - Cost concepts – Cost and output relationship - cost control – Short run and Long run - cost functions - production functions – Break-even analysis - Economies scale of production.
Marginal cost & cost sheet ppt 1
The document discusses concepts related to marginal costing including:
1) The definition of marginal cost as the change in total cost from producing one additional unit of output.
2) Formulas used in marginal costing like marginal cost, contribution, profit volume ratio, and break-even point.
3) The advantages of using marginal costing and break-even analysis for managerial decision making regarding production levels and product profitability.
Analysis of cost, profit, and total revenue
Cost is the most important consideration in production. Producers consider both economic and accounting costs. Economic costs are future-oriented and consider potential future profits, while accounting costs only recognize past expenses. There is a difference between explicit costs like wages and implicit costs like using a firm's existing equipment. In the short run, firms take their capital level as fixed and vary labor. Short run costs include total fixed, total variable, total, average fixed, average variable, average total, and marginal costs. The long run allows all factors to vary and has the lowest average total costs. Long run marginal cost measures the change in long run total cost from a change in output. A competitive firm will produce at the level where marginal cost equals
Chapter 7 cost of production
This chapter discusses the costs of production for a firm. It explains the differences between fixed and variable costs, as well as how average and marginal costs are determined. In the short run, costs are influenced by increasing or decreasing returns. In the long run, the user cost of capital must be considered. Cost curves, including total, average, and marginal costs are presented to show how costs change with different levels of output.
Ch07
1) In the short run, firms have both fixed and variable costs. Fixed costs do not depend on output while variable costs do. Marginal cost is the change in total cost from producing one more unit of output.
2) As a firm increases output in the short run, marginal costs will initially decrease but eventually rise as it approaches its fixed capacity. Average costs also fall at first but then rise as marginal costs increase.
3) A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost, which is also where average total cost is minimized in perfect competition. The marginal cost curve represents the firm's short-run supply curve.
Short-Run Costs and Output Decisions
- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
- Marginal cost is the change in total cost from producing one additional unit. It reflects changes in variable costs. Marginal cost typically rises as output increases in the short run due to diminishing returns.
- A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost. In perfect competition, this occurs where price equals marginal cost.
Ch07
- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
- Marginal cost is the change in total cost from producing one additional unit. It reflects changes in variable costs. Marginal cost typically rises as output increases in the short run due to diminishing returns.
- A profit-maximizing firm will produce the quantity where marginal revenue equals marginal cost. In perfect competition, this occurs where price equals marginal cost.
9 costs class
This document discusses key concepts related to business costs including:
1. It defines economic costs, accounting costs, and sunk costs.
2. It explains the differences between short-run and long-run costs, and how total, average, and marginal costs are calculated in each time period.
3. It provides examples of cost schedules and diagrams cost curves, discussing their characteristics and relationships.
Pyndick chapter 7-production cost
This document discusses the different types of costs that firms face, including:
- Fixed costs that do not vary with output levels
- Variable costs that vary with output
- Short-run costs determined by production technology and returns to scale
- Long-run costs including the user cost of capital which is depreciation plus the interest rate times the value of capital
It provides examples of cost curves and how costs change with varying levels of output in the short-run and considerations for minimizing costs through optimal input choices in the long-run.
The Production Process and Control
This document discusses key concepts in production costs, including:
1. Cost minimization occurs when the slope of the isocost curve equals the slope of the isoquant curve.
2. Firms should substitute cheaper inputs for more expensive inputs when input prices rise to minimize costs.
3. Economies of scale exist when average costs decrease with increased output due to factors like specialization and bulk purchasing. Diseconomies of scale occur when management becomes complex and average costs increase with more output.
4. Cost functions show the relationship between total, fixed, variable, average, and marginal costs as a firm's output changes. Marginal cost is the change in total cost from one additional unit of output.
Cost 2
The document discusses cost theory and the different types of costs firms face. It explains that in the short-run, total cost is the sum of fixed and variable costs. Average costs like average fixed cost, average variable cost, and average total cost are defined. In the long-run, all costs are variable. Economies and diseconomies of scale impact the long-run average cost curve shape. The envelope relationship shows that short-run average costs are always above the long-run average cost curve.
Cost theory and analysis.pptx
Here are the steps to solve this example:
1. Estimate the total cost function:
TC = a + bQ + cQ^2
2. Take the first derivative of the total cost function to get the average cost function:
AC = b + 2cQ
3. Take the first derivative of the average cost function and set equal to 0 to minimize AC:
b + 2cQ = 0
Q = -b/2c
4. Plug back into the average cost function to get the minimum AC.
5. Compare minimum AC to market price to determine if production should continue.
In this example, the estimated total cost function is:
TC = 700
Production And Cost In The Short Run
The document discusses different types of costs firms face in both the short run and long run. It defines explicit costs as actual cash payments and implicit costs as opportunity costs. In the short run, some resources are fixed while others are variable. As more of the variable input is added, marginal product initially increases but eventually declines due to diminishing returns. In the long run, all inputs are variable and firms can choose different plant sizes, leading to economies or diseconomies of scale.
Lecture2
Cost estimating is used to determine project costs, profitability, and productivity improvements. The top-down approach uses historical data from similar projects, while the bottom-up approach breaks costs down into small units. Costs can be categorized as fixed, variable, incremental, direct, indirect, standard, opportunity, life-cycle, cash, book, and sunk. Breakeven analysis determines the production level where total revenue equals total costs.
Lecture2
Cost estimating is used to determine project costs, set prices, and evaluate investments. The top-down approach uses historical data from similar projects, while the bottom-up approach breaks costs down into small units. Costs can be categorized as fixed, variable, or incremental depending on how they change with production levels. Breakeven analysis determines the production level where total revenue equals total costs.
Lecture2
Cost estimating is used to determine project costs, profitability, and productivity improvements. The top-down approach uses historical data from similar projects, while the bottom-up approach breaks costs down into small units. Costs can be categorized as fixed, variable, incremental, direct, indirect, standard, opportunity, life-cycle, cash, book, and sunk. Breakeven analysis determines the production level where total revenue equals total costs.
Lecture2
Cost estimating is used to determine project costs, profitability, and productivity improvements. The top-down approach uses historical data from similar projects, while the bottom-up approach breaks costs down into small units. Costs can be categorized as fixed, variable, incremental, direct, indirect, standard, opportunity, life-cycle, cash, book, and sunk. Breakeven analysis determines the production level where total revenue equals total costs.
Similar to Costs (20)
Costs
- 7. Variation Of SR cost with Output: 29.1 24.7 4.4 42 320 272 48 11 27.8 23 4.8 32 278 230 48 10 27.3 22 5.3 30 246 198 48 9 27 21 6 27 216 168 48 8 27 20.1 6.9 21 189 141 48 7 28 20 8 20 168 120 48 6 29.6 20 9.6 18 148 100 48 5 32 20.5 12 16 130 82 48 4 38 22 16 20 114 66 48 3 47 23 24 21 94 46 48 2 73 25 48 25 73 25 48 1 48 0 48 0 Average cost= c/q Average Variable cost= VC/q Average Fixed cost= F/q Marginal cost MC Total cost C Variable cost VC Fixed Cost F Output Q
- 8. F Variable cost and Fixed cost Curve
- 9. Total cost, Variable cost and Fixed cost Curve
- 10. Average Variable cost Cost Quantity 6 4 120 216 20 F C VC AVC Cost per unit Quantity
- 12. Average total cost Cost Quantity 6 4 120 216 20 F C VC AVC Cost PER UNIT Quantity AFC AC
Editor's Notes
- T