Ch21-Cost-Curves-中级微观经济学.pptVIP

ChapterTwenty-OneCostCurves

TypesofCostCurvesAtotalcostcurveisthegraphofafirm’stotalcostfunction.Avariablecostcurveisthegraphofafirm’svariablecostfunction.Anaveragetotalcostcurveisthegraphofafirm’saveragetotalcostfunction.

TypesofCostCurvesAnaveragevariablecostcurveisthegraphofafirm’saveragevariablecostfunction.Anaveragefixedcostcurveisthegraphofafirm’saveragefixedcostfunction.Amarginalcostcurveisthegraphofafirm’smarginalcostfunction.

TypesofCostCurvesHowarethesecostcurvesrelatedtoeachother?Howareafirm’slong-runandshort-runcostcurvesrelated?

Fixed,VariableTotalCostFunctionsFisthetotalcosttoafirmofitsshort-runfixedinputs.F,thefirm’sfixedcost,doesnotvarywiththefirm’soutputlevel.cv(y)isthetotalcosttoafirmofitsvariableinputswhenproducingyoutputunits.cv(y)isthefirm’svariablecostfunction.cv(y)dependsuponthelevelsofthefixedinputs.

Fixed,VariableTotalCostFunctionsc(y)isthetotalcostofallinputs,fixedandvariable,whenproducingyoutputunits.c(y)isthefirm’stotalcostfunction;

y$Fcv(y)

y$Fcv(y)c(y)F

Av.Fixed,Av.VariableAv.TotalCostCurvesThefirm’stotalcostfunctionis

Fory0,thefirm’saveragetotalcostfunctionis

Av.Fixed,Av.VariableAv.TotalCostCurvesWhatdoesanaveragefixedcostcurvelooklike?

AFC(y)isarectangularhyperbolasoitsgraphlookslike...

$/outputunitAFC(y)y0AFC(y)?0asy?￥

Av.Fixed,Av.VariableAv.TotalCostCurvesInashort-runwithafixedamountofatleastoneinput,theLawofDiminishing(Marginal)Returnsmustapply,causingthefirm’saveragevariablecostofproductiontoincreaseeventually.

$/outputunitAVC(y)y0

$/outputunitAFC(y)AVC(y)y0

Av.Fixed,Av.VariableAv.TotalCostCurvesAndATC(y)=AFC(y)+AVC(y)

$/outputunitAFC(y)AVC(y)ATC(y)y0ATC(y)=AFC(y)+AVC(y)

$/outputunitAFC(y)AVC(y)ATC(y)y0AFC(y)=ATC(y)-