This document contains the whole summary of what actually is in the chapter 8 of economics pearson book. This can help you to understand the basics of economics and graphing.
-Quantity of outputneeded
Graphs
Not calculations but
how to understand it
-How much those inputs cost
*
T58-
1) Fixed lost 8--Doesn't depend on firm'soutput.
-cost remain same
ifthe firm produce nothing.
No Fixed cost in
Long Run
-
2) variable costo-- Depends on level
ofproduction
3) Total cost : -
TEC + TVL
4) Average Fixed Cost -- TFC divided by number of units of output
Spreading
-
As
output increases, AFC declines as we are
Overhead dividing a fixed no by a
larger quantity
100 TFC 100
AF2=
⑧
E
&
.
. AFC
outputunits Outputunits
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