ECSENOMICS Chapter 7 Analysis of Cost McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Analysis of Cost
ECSENOMICS The relationship between Total Cost and Marginal Cost T-53 Figure 7-1 (a) Total Cost (b) Marginal Co C MC 960 40 100 McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-53 Figure 7-1 The Relationship between Total Cost and Marginal Cost
ECSENOMICS All Cost Curves can Be derived from the Total Cost curve T-54 Figure 7-2 (a)Total Fixed, and Variable Cost (b)Average Cost, Marginal Cost 800 AC 700 AVC 600 50 400 Total cost 300 Variable cost 名20 100 Fixed cost 0 2345678910 456789 Quantity McGraw-Hillrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. All Cost Curves Can Be Derived from the Total Cost Curve T-54 Figure 7-2
ECSENOMICS Sh Relation of Slope and Marginal Cost 1-55 Figure 7-3 Relation between Slope and Marginal cost d Total cost curve T a angent line Quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Relation of Slope and Marginal Cost T-55 Figure 7-3
ECSENOMICS Diminishing returns and U-Shaped Cost Curves T-56 Figure 7-4 (a) Diminishing Returns (b)... Produce Upward-Sloping MC 0.3 0.2 0.1 B 40 Labor Output McGraw-Hillrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Diminishing Returns and U-Shaped Cost Curves T-56 Figure 7-4
