Scribd Logo
Upload

Welcome to Scribd!

  • 17 views

    Session 1.2016

    Uploaded by

    Amgad Elshamy
    The document discusses the difference between short-run and long-run periods, types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It also defines a production function as the relationship between inputs and outputs and includes a table showing quantities, costs, and average and marginal costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Session 1.2016

    Uploaded by

    Amgad Elshamy
    17 views1 page
    The document discusses the difference between short-run and long-run periods, types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It also defines a production function as the relationship between inputs and outputs and includes a table showing quantities, costs, and average and marginal costs.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the difference between short-run and long-run periods, types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It also defines a production function as the relationship between inputs and outputs and includes a table showing quantities, costs, and average and marginal costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views1 page

    Session 1.2016

    Uploaded by

    Amgad Elshamy
    The document discusses the difference between short-run and long-run periods, types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It also defines a production function as the relationship between inputs and outputs and includes a table showing quantities, costs, and average and marginal costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 1

    The difference between long-run and short-run:

    Short-run: the period in which at least one of inputs is fixed (ex. Technology, land).

    Long-run: the period in which all inputs can vary

    Types of costs:
     Fixed costs (FC): costs that remain constant as output changes (ex. Rent)
    Average fixed cost(AFC): fixed cost divided by the quantity of output
    AFC = FC/Q
     Variable costs (VC): costs that vary as output changes (ex. Labor).
    Average variable cost(AVC): variable cost divided by the quantity of output
    AVC = VC/Q
     Total costs (TC): the sum of all Fixed costs and all Variable
    costs.
    TC = FC + VC
    Average total cost(ATC): total costs divided by the quantity of
    output
    ATC = TC/Q
    OR the sum of Average fixed cost(AFC) and Average variable
    cost(AVC)
    ATC = AFC + AVC
     Marginal costs (MC): the change in total costs when the quantity of output changes.
    MC = ∆TC/∆Q

    Production function: the relationship between inputs and outputs

    Assignment
    Q FC VC TC AFC AVC ATC MC
    0 800 0
    200 800 650
    450 800 1,300
    550 800 1,950
    600 800 2,600

    You might also like