© 2008 pearson addison wesley. all rights reserved chapter seven costs

© 2008 Pearson Addison Wesley. All rights reserved

Chapter Seven

Costs

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Equation 7.1

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Equation 7.2

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Figure 7.1Short-Run Cost Curves

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Equation 7.3

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Equation 7.4

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Equation 7.5

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Figure 7.2Effect of a Specific Tax on Furniture Firm’s Cost Curves

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Equation 7.6

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Equation 7.7

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Equation 7.8

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Figure 7.3Cost Minimization

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Equation 7.9

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Equation 7.10

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Equation 7.11

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Equation 7.12

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Equation 7.13

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Equation 7.14

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Equation 7.15

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Equation 7.16

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Equation 7.17

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Equation 7.18

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Equation 7.19

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Figure 7.4Output Maximization

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Equation 7.20

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Figure 7.5Change in Factor Price

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Equation 7.21

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Figure 7.6(a)Expansion Path and Long-Run Cost Curve

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Figure 7.6(b)Expansion Path and Long-Run Cost Curve

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Equation 7.22

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Table 7.1Shape of Average Cost Curves in Canadian Manufacturing

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Figure 7.7(a)Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

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Figure 7.7(b)Long-Run Average Cost as the Envelope of Short-Run Average Cost Curves

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Figure 7.8Long-Run and Short-Run Expansion Paths

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Figure 7.9(a)Learning by Doing

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Figure 7.9(b)Learning by Doing

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Figure 7.10Joint Production