ECON101 Lecture Notes - Inkjet Printing, Fixed Cost, Marginal Cost

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: Corey Van De Waal

Document Summary

Chapter 11: output and costs: the goal of the firm, decision time frames, short run technology constraint tp,mp & ap and shape of these curves, malthus and the green revolution, economic cost waiting for the doctor, tc,tfc,tvc, mc,ac,afc & avc shape of the cost curves, relationship between marginal and average values, shifts in the cost curves, long run costs, lrac curve as the envelope of srac curves, returns to scale, choosing an ink jet or a laser printer. Decision time frames: a firm owner"s decisions can be categorized as short run decisions and long run decisions, the short run is a time frame in which the quantities of some resources are fixed. The fixed resources include the firm"s management organization structure, level of technology, buildings and large equipment. There are three relationships between the quantity of labour and the firm"s output.