Ch 6.docx

12 Pages
Unlock Document

Multiple Professors

Ch 6 Supply Costs economies of scale and the supply curveeconomic productive efficiency a situation in which a producer cannot produce more without increasing costeconomic profit total revenue minus total cost and distinct from normal profiteconomies of scale the condition under which longrun average cost decreases as output increasesfixed cost a cost of production that does not vary with the level of outputnormal profit the return a firm receives from inputs such as a directors role in organizaing and running the business This is part of the firms opportunity costproducer surplus the difference betweent the amount the producer receives from the sale of a good and the lowest amount that producer is willing to accept for that goodscale effiency a situation where the provider is producing at an output level such that average is minimizedvariable cost a cost of production that varies directly with the level of outputCost functionscost functions show the relationship between total costs and outputin the short run fixed costs remain constant and are incurred even when output is 0 variable costs increase with the level out outputNeed table 53 to do this as well
More Less

Related notes for ECO440H5

Log In


Join OneClass

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

Sign up

Join to view


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.