AGEC 200 Lecture Notes - Cost Curve, Fixed Cost, Marginal Cost

• School: McGill University
• Department: Agricultural Economics
• Course: AGEC 200
• Professor: Anwar Naseem

Document Summary

Clicker 1: average fixed cost curve is always negative, the highest curve is the total cost curve, the orange one that crosses all of them is not a variable average. Probably marginal cost curve: blue is the average variable cost because it"s below the total, it"s decreasing first = increasing returns first = decreasing curve and then increasing later = decreasing returns, mc is the orange. Clicker 2: q0: fixed cost is 50 and vc is 0, q1, tc is 60, afc is 50/1 = 50. Mc is 20: q2: afc is 25, avc is 15, atc = tc/q, fixed cost then total cost then average fixed cost . Mc: intersects atc at minimal: when mc below atc curve, the atc is decreasing because extra cost is less than avg. Like everytime you get mark that"s lower than gpa, you bring gpa down.