TOPICS:
Short Run Costs: Define
Draw, Describe
OUTCOMES:
Distinguish between
fixed, variable and total costs
Explain the difference between
average and marginal costs
Compute and graph AFC, AVC, ATC,
and MC when given total cost data
Know how and why we graph the MC
"at the midpoints".
Explain how TC, TVC, and TFC
relate to one another: Do TC and TVC get closer
together?
Explain how AVC, ATC, and MC
relate to one another
- Do ATC and AVC get
closer together?
- Why does MC cross ATC and AVC
at their lowest points?
Explain the shapes of the total,
average, and marginal cost curves (TC, TVC, TFC, ATC,
AVC, AFC, and MC)
Relate average product to average
variable cost, and marginal product to marginal
cost
Explain what happens to the cost
curves if there is a change in fixed costs and what
happens if there is a change in variable costs (what can
cause cost curves to rise or fall?)
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