ECON 1 Lecture Notes - Lecture 13: East Los Angeles College, Fixed Cost, Opportunity Cost

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17 Jun 2020
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The firm"s how problem and the total cost of production. Long run total cost curve (lrtc): the ote relationship between output. Short-run total cost curve (srtc): the ote relationship between output. Slope of both curves = marginal cost and total cost in the short run and total cost in the long run. Upward sloping output increases, total cost increases. Idea: if want more output, hire more workers, total cost increases. Bowed inward toward horizontal axis while mc decreases. Bowed outward away from horizontal axis while. Total cost in the lr and sr. Factors of production are variable so can essentially have no costs with no factors of production. Short run starts on y-axis, at fixed cost. At least 1 factor is fixed so always a cost associated. Economic (opportunity) cost vs. accounting cost variable factors of production no matter output. Srtc = fc + srvc factors of production in the short run.

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