ECON 1B03 Lecture Notes - Lecture 8: Perfect Competition, Average Variable Cost, Marginal Cost

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Hannah Holmes

Document Summary

Econ 1b03 lecture 7 costs of production and perfect competition. Costs of production are on test #2. Content" test 2" on avenue goes over what we need to know before the midterm: midterm pretest due tuesday night, early right next wednesday, midterm next saturday. Basic table to make sure you understand equations. Marginal costs if i produce one more good, what will happen to my total cost: j&h industries produces breadboards for restaurants. Costs and the selling price of the good, p, are given in dollars: fill in the rest of the table. Know the terms: average fix cost, total variable costs, total cost/q, marginal product change in q, l = labour, marginal cost change in total cost given change in quantity. Above figure gives information about the average total cost, average fixed cost, average variable cost, and marginal cost for a firm. B: atc average total always above average variable and average fixed cost.