Short-Run Costs
Production
Graphs & Calculations
Short Run
Functions
100
The additional cost of producing one more unit of a product
What is Marginal Cost
100
Change in total product / Change in Input
What is Marginal Product?
100
Section E
What is Negative Returns?
100
Rent, electricity, labor, machines, ingredients
What is Total Cost?
100
How many students are in the class right now?
What is count them?
200
What causes the upward sloping portion of the marginal cost curve?
What is diminishing marginal returns
200
Total Product / Units of Labor
What is Average Product?
200
Total cost of 30 units
What is 750?
200
Quantity is 3, Total Cost is 40, Fixed Cost is 10, Average Variable Cost:
What is 10?
200
The total product divided by the quantity of labor hired.
What is Average Product?
300
Costs which do not change as higher or lower quantities are produced in the short run
What are Fixed Costs?
300
a period in which at least one resource is fixed
What is short run?
300
Fixed Cost of 24 units
What is 11?
300
The change in output from increasing the number of workers used by one person, or by adding one more machine to the production process in the short run
What is marginal product?
300
At what quantity does diminishing returns set in?
Where is 11?
400
Costs which increase as higher quantities are produced and decrease as lower quantities are produced.
What are variable costs?
400
What Increasing Returns?
400
If the average variable cost of producing 5 units is $100, and the average variable cost of producing 6 units is $150, then the marginal cost of increasing production from 5 units to 6 units is:
What is $400?
Variable Cost 5 units = 5 * 100 = $500
Variable Cost 6 units = 6 * 150 = $900
Marginal Cost = (900 - 500) / (6 - 5) = $400
400
As we add more units of a variable input to fixed amounts of land and capital, the change in total output will at first rise and then fall
What is law of diminishing returns?
400
Wages / Marginal Product =
What is the Marginal Cost of Labor?
500
When Marginal Cost is above the Average Total Cost curve.
What is increasing Average Total Cost?
500
Bonus 500
What is a gift 500?
500
Fixed Cost of producing 38 units:
What is $8?
500
Which is more difficult ... AP Micro or AP Macro?
Bonus 500
500
Calculate the marginal cost of labor if the marginal product is 8 and the wage is $64.
What is $8?