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Class notes Economics

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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.

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  • July 27, 2023
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Short Run Costs
Chapter 8: and
Output
-
-




Decisions


To calculate costs, must
firm know -
*
a




-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=





E
&




.



. AFC


outputunits Outputunits

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