0 Ch05 Analysis of Cost Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch05 Analysis of Cost
1907 06-2 Topics to be Discussed Measuring Cost:Which Costs Matter? ·Cost in the Short Run ·Cost in the Long Run Long-Run Versus Short-Run Cost Curves Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 06-2 Topics to be Discussed • Measuring Cost: Which Costs Matter? • Cost in the Short Run • Cost in the Long Run • Long-Run Versus Short-Run Cost Curves
190 06-3 5.1 WHAT ARE COSTS? Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 06-3 5.1 WHAT ARE COSTS?
1907 06-4 3树 Total Revenue,Total Cost,and Profit ·Total Revenue -The amount a firm receives for the sale of its output. ·Total Cost -The market value of the inputs a firm uses in production Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 06-4 Total Revenue, Total Cost, and Profit • Total Revenue – The amount a firm receives for the sale of its output. • Total Cost – The market value of the inputs a firm uses in production
06-5 0 砂 Profit is the firm's total revenue minus its total cost. Profit Total revenue Total cost Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 06-5 Total Revenue, Total Cost, and Profit • Profit is the firm’s total revenue minus its total cost. Profit = Total revenue Profit = Total revenue - Total cost Total cost