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1、Costs,Short-run costs,Total cost,Total costs for firm X,TFC,Output (Q) 0 1 2 3 4 5 6 7,TFC () 12 12 12 12 12 12 12 12,Total costs for firm X,TVC,TFC,Output (Q) 0 1 2 3 4 5 6 7,TFC () 12 12 12 12 12 12 12 12,TVC () 0 10 16 21 28 40 60 91,Total costs for firm X,TC,TVC,TFC,Output (Q) 0 1 2 3 4 5 6 7,TF
2、C () 12 12 12 12 12 12 12 12,TVC () 0 10 16 21 28 40 60 91,TC () 12 22 28 33 40 52 72 103,Total costs for firm X,TVC,TFC,Diminishing marginal returns set in here,TC,Short-run costs,Marginal cost = DTC/DQ,Deriving marginal costs,Q TC MC 0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7 12 20 31,TC,Q,
3、Costs (),Q TC MC 0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7 12 20 31,DTC = 12,DQ = 1,Q,Costs (),TC,Deriving marginal costs,Q TC MC 0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7 12 20 31,MC,Diminishing returns set in here,Q,Costs (),TC,Deriving marginal costs,MC,Q,Costs (),Deriving margina
4、l costs,Short-run costs,Average cost = TC / Q,AFC,Q TVC AVC 0 0 - 1 10 10 2 16 8 3 21 7 4 28 7 5 40 8 6 60 10 7 91 13,Q,Costs (),AVC,AFC,Q TC AC 0 12 1 22 22 2 28 14 3 33 11 4 40 10 5 52 10.4 6 72 12 7 103 14.7,Q,Costs (),AVC,AC,Q TC MC AC 0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7 12 20 31,M
5、C,AC,- 22 14 11 10 10.4 12 14.7,Q,Costs (),Q TC MC AC 0 12 1 22 2 28 3 33 4 40 5 52 6 72 7 103,10 6 5 7 12 20 31,MC,AC,- 22 14 11 10 10.4 12 14.7,Q,Costs (),Long-run costs,Long-run costs,Alternative long-run average cost curves,Output,O,Costs,(a) Economies of scale,LRAC,Alternative long-run average
6、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-run average cost curve,Output,O,Costs,LRAC,A typical long-run average cost curve,Output,O,Costs,LRAC,Economies of scale,Constant costs,Diseconomies
7、 of 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 marginal costs,LRMC,Output,O,Costs,(c) Constant costs,LRAC = LRMC,Long-run average and marginal costs,Output,O,Costs,(d) Initial economies
8、of scale, then diseconomies of scale,Long-run average and marginal costs,LRMC,LRAC,Long-run costs,Relationship between short-run and long-run AC curves,Deriving long-run average cost curves: factories of fixed size,SRAC1,Costs,Output,O,1 factory,Deriving long-run average cost curves: factories of fi
9、xed 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-run average cost curves: factories of fixed size,SRAC1,SRAC3,SRAC2,SRAC4,SRAC5,Costs,Output,O,5 factories,4 factories,Deriving lon
10、g-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-run average cost curves,Deriving a long-run average cost curve: choice of factory size,LRAC,Costs,Output,O,