MATH 1505 Lecture Notes - Lecture 15: Marginal Revenue, Demand Curve, Oligopoly
5 Mar 2018
School
Department
Course
Professor
Document Summary
Chapter 11: the marginal cost curve slopes downward at low outputs because of greater specialization and division of labor. The rent is increased by a week. If other things remain the same, the average fixed cost curve shifts upward, the average variable cost curve does not change, the average total cost curve shifts upward, and the marginal cost curve does not change. When the marginal product curve is rising, the marginal cost curve is falling. When the average product curve is rising the average variable cost curve is falling. Maximum mp occurs at the same output as minimum mc. Maximum ap occurs at the same output as minimum avc: sue"s surfboards is a firm that produces surfboards, sue"s surfboards hires workers at (cid:882)(cid:882) a week. Its total fixed cost is ,000 a week. When output is 160 surfboards a week, average fixed cost is . 25 a surfboard and average variable cost is . 50 a surfboard.
