'Tc q1' presentation slideshows

299 views • 19 slides

Multiply Product Firms

Multiply Product Firms. And economies of scale and scope. Review When we had a single product firm, cost just depended on the output of the one good. The scale economy index was seen as S = AC/MC. Now, by definition AC = TC/Q, where Q is the level of output. The index can be rewritten

213 views • 10 slides

Some Additional Cost Concepts

Some Additional Cost Concepts. The author suggests that a good function to represent total cost has the general form TC = f + aQ + bQ^2 + cQ^3, Where the key ^ means raise to power, f represents fixed cost, Q represents the level of output that can vary, and

148 views • 7 slides