Ch20-Cost-Minimization-中级微观经济学.pptVIP

Average Total Production Costs For positive output levels y, a firm’s average total cost of producing y units is Returns-to-Scale and Av. Total Costs The returns-to-scale properties of a firm’s technology determine how average production costs change with output level. Our firm is presently producing y’ output units. How does the firm’s average production cost change if it instead produces 2y’ units of output? Constant Returns-to-Scale and Average Total Costs If a firm’s technology exhibits constant returns-to-scale then doubling its output level from y’ to 2y’ requires doubling all input leve