Class Notes (836,321)
United States (324,456)
Economics (88)
ECON 102 (21)
C.Hilmer (17)
Lecture 10

ECON 102 Lecture 10: econ102 - ch 13
Premium

3 Pages
18 Views
Unlock Document

Department
Economics
Course
ECON 102
Professor
C.Hilmer
Semester
Spring

Description
The Costs of Production Chapter 13 profit = TR TC accounting costs = explicit costs (actual money outlay) economic costs = explicit costs + implicit costs accounting profit economic profit marginal product of labor (MP ) L QL o how much output we get from hiring more workers diminishing marginal product of labor o eventually MP deLreases as L increases (holding other things equal) Costs TC = VC + FC o VC = variable costs costs that change as output changes; 0 when if output = 0 o FC = fixed costs costs that dont change as output changes; paid even if output = 0 average total cost (ATC) = TCQ = AVC + AFC average variable cost (AVC) = VCQ average fixed cost (AFC) = FCQ marginal costs (MC) = TCQ = VCQ efficient scale the quantity that minimizes ATC when MC < ATC, ATC is falling when MC > ATC, ATC is rising when MC = ATC, ATC is at a minimum ATC can be AVC for some things
More Less

Related notes for ECON 102

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit