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Chapter 9

Applications of Cost Theory

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Figure 9.1 Polynomial Cost-Output
Relationships

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.2 Logarithmic Cost-Output
Relationship

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.3 Long-Run Average Cost
Function

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.5 Fixed Costs Stranded by
Freewheeling Electricity and
Satellite-Based Digital TV

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.7 Generalized Break-Even
Analysis

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.8 Linear Break-Even Analysis
Chart

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.9 Linear Break-Even Analysis
Chart for the Allegan Manufacturing
Company

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.10 Linear Break-Even Analysis
Chart for the Allegan Manufacturing
Company Showing the Effects of a
Price Increase

Chapter 9 APPLICATIONS OF COST THEORY


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Figure 9.11 Linear Break-Even Analysis
Chart for the Allegan Manufacturing
Company Showing the Effects of
Substituting Fixed Costs for Variable Costs

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