MGTA01H3 Lecture 1: A02_Study Questions_Topic 6

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Mgea02 introduction to microeconomics: a mathematical approach. Topic 6 (oct 17 - 23) costs. Coverage: the typical shapes of a firm"s cost curves. Use of fixed and variable inputs determine short run costs, based on diminishing marginal product and rising marginal cost. The distinction between the short run and long run costs. Definition, description and explanation of total, average and marginal costs in the short run. The importance of marginal costs to decision- making. The envelope theorem and the relationship between short-run and long-run costs. The long run average cost curve (lac or lrac) as an envelope of the short run average cost curves. Economies of scale, diseconomies of scale, and minimum efficient scale. Recommended reading: second part of chapter 11 behind the supply curve: inputs and. Also, appendix 11a inverse relationships between productivity and. Do all the check your understanding questions within the parts of the text in the assigned readings.