《微观经济学》课程PPT教学课件（英文版）chapter 7 The Cost of Production

Cost in the short run a Continuing △VC=w△L MQw△L △Q Chapter 7 Slide 26

Chapter 7 Slide 26 Cost in the Short Run ◼ Continuing: VC = wL Q L MC   = w

Cost in the short run a Continuing △MD.△Q △L △ L for a l unit△Q=a。1 △L △Q△MPL Chapter 7 Slide 27

Chapter 7 Slide 27 Cost in the Short Run ◼ Continuing: L MPL    = Q MPL 1 Q L L for a 1unit Q  =     =

Cost in the short run ■ n conc| usion MC MPL and a low marginal product (MP) leads to a high marginal cost (MC) and vise versa Chapter 7 Slide 28

Chapter 7 Slide 28 Cost in the Short Run ◼ In conclusion: ◼ …and a low marginal product (MP) leads to a high marginal cost (MC) and vise versa. MPL MC w =

Cost in the short run a Consequently(from the table) MC decreases initially with increasing returns +0 through 4 units of output e MC increases with decreasing returns e5 through 11 units of output Chapter 7 Slide 29

Chapter 7 Slide 29 Cost in the Short Run ◼ Consequently (from the table): ⚫ MC decreases initially with increasing returns ◆0 through 4 units of output ⚫ MC increases with decreasing returns ◆5 through 11 units of output

A Firm's Short-Run Costs($) Rate of fixed variable otal Marg inal verage Average Average Output Cost Cost Cost Cost Fixed Variab Tota (Fc) (Vc) (TC) (MC Cost Cost Cost (AFC) (AVC) (ATC) 50 50 50 50 100 50 50 50 100 0123456789 50 78 128 28 25 39 64 50 98 148 20 16.7 32.749.3 50 112 162 14 12.5 28 40.5 50 130 180 18 10 26 36 50 150 200 20 8.3 25 33.3 50 175 225 25 7.1 25 32.1 50 204 254 29 6.3 25.531.8 50 242 292 38 5.6 26932.4 10 50 300 350 58 30 35 50 385 435 85 4.5 35 39.5

A Firm’s Short-Run Costs ($) 0 50 0 50 --- --- --- --- 1 50 50 100 50 50 50 100 2 50 78 128 28 25 39 64 3 50 98 148 20 16.7 32.7 49.3 4 50 112 162 14 12.5 28 40.5 5 50 130 180 18 10 26 36 6 50 150 200 20 8.3 25 33.3 7 50 175 225 25 7.1 25 32.1 8 50 204 254 29 6.3 25.5 31.8 9 50 242 292 38 5.6 26.9 32.4 10 50 300 350 58 5 30 35 11 50 385 435 85 4.5 35 39.5 Rate of Fixed Variable Total Marginal Average Average Average Output Cost Cost Cost Cost Fixed Variable Total (FC) (VC) (TC) (MC) Cost Cost Cost (AFC) (AVC) (ATC)