Intermediate Microeconomics · free preview
Cost Curves from Production
Marginal cost is the wage over marginal product and average variable cost the wage over average product, so every cost curve is a production curve upside down, diminishing marginal product arriving as rising marginal cost, the translation made explicit.
1. The reciprocal relations
The reciprocal relations
2. Shapes survive upended
Shapes survive upended
3. The area translation
The area translation
4. Why the reciprocal matters
Why the reciprocal matters
5. The core relation
What is marginal cost in terms of the wage and marginal product?
6. Average's translation
In terms of average product, how does average variable cost translate from production?
7. The worked numbers
For g equal to 3 root x at w 2, output 6 sits at x 4. What is MC there?
8. The area check
Integrating the marginal cost curve from zero up to output y yields exactly what?
9. The worked MC
Compute w over MP at x of 4 with w 2 and MP 0.75, and write the number to two decimals.
10. The area under MC
For the worked family, compute y squared over 4.5 at y of 6, and write the number.
11. The margin further out
For g equal to 3 root x with w of 2, what is marginal cost at x of 9 where MP is 0.5?
12. Average cost from average product
At x of 4 the average product is 1.5 with w of 2. What is average variable cost?
13. The margin at the top of the range
For the worked cost family y squared over 4.5 as variable cost, what is marginal cost at y of 6?
14. The reciprocal in action
As the input grows from 1 to 9 in the slice g equal to 3 root x, what happens to marginal cost?
15. Marginal cost at nine
For g equal to 3 root x with w of 2, compute marginal cost at x of 9, and write the number.
16. Average variable cost from the product
At x of 4 with average product 1.5 and w of 2, compute average variable cost, and write the number to two decimals.
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