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  • Cost Notes

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    Shreya A
    23 views6 pages
    1. The document discusses the relationships between total cost (TC), total fixed cost (TFC), total variable cost (TVC), average cost (AC), and marginal cost (MC). 2. It explains that AC is greater than AVC by the amount of AFC, and that the distance between AC and AVC will continue to decrease as output increases. 3. Both AC and AVC are V-shaped due to the behavior of fixed and variable costs over different levels of production.

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    cost notes

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    1. The document discusses the relationships between total cost (TC), total fixed cost (TFC), total variable cost (TVC), average cost (AC), and marginal cost (MC). 2. It explains that AC is greater than AVC by the amount of AFC, and that the distance between AC and AVC will continue to decrease as output increases. 3. Both AC and AVC are V-shaped due to the behavior of fixed and variable costs over different levels of production.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    23 views6 pages

    Cost Notes

    Uploaded by

    Shreya A
    1. The document discusses the relationships between total cost (TC), total fixed cost (TFC), total variable cost (TVC), average cost (AC), and marginal cost (MC). 2. It explains that AC is greater than AVC by the amount of AFC, and that the distance between AC and AVC will continue to decrease as output increases. 3. Both AC and AVC are V-shaped due to the behavior of fixed and variable costs over different levels of production.

    Copyright:

    © All Rights Reserved
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    of 6

    CLASSTIME Pg. No.

    Date

    COST
    at s Ial1pundituxe Jnuxad npAzduing
    LMedit
    t tu Aun ezpliut LAt and Jmpliut
    LSAt

    B) DiLunu
    bthuun 7plitit imp.inp.liit Let

    frpliuitLut Ambliuit Lt

    t i a thi autual ment mu Lat s


    nptndituze n inputaelspplird Jaue..
    made en ukiduns n
    hiingthia.auts

    At inualuesaltual inueluu inputed


    ManuPaumus value 40uko
    hing and hiaing enid hy th inm
    thi npi
    laumunt utages Inteat on tapita
    unt k. unt o n land tr

    u n t e hutunenIvc and Tfc.


    CLASSTIME/Pa No
    Oate

    TVG
    TEC
    VC HLNA e t h k e LAAt
    )TECau thRe Let
    nlatioms-hith has diuct
    wuith has ne
    Jevel laionshin uth the
    Fhup with thu level e 9Laut.

    21ttannet khanged in t an bi_hanged un


    hu shot un th aho un.

    3 t Lan nuUwa h zene t Lanki wne n


    PMEdudhenl

    Salany manunt ta wage aAuallakau,.


    unteut tt LDAT AAUS nateial

    Qiagam Tstal ired t (TFOw

    TR

    otal Vasiable 4etTVO

    TUC
    LASTIM
    Dat

    Total lost Tc the Telal pndinute inunLd


    um 9n tu au o duth uin td
    the e duHm a n ed
    Tc TFC t TVC

    vuHwoiage t AC AYers te the p Junit


    p& duung th Lertmmeduty.
    AC AfC t AVc
    AC=L
    Hangina LAtHl uLena te addiismal to JeMal at
    JMun9m mLLL unut eutputJs peduud.
    HL (n=Tn

    HC /

    ELplain the ulahins.hip tureen AL and Hc

    B sth AC and Hane deied em T.


    eLns te thu p uni, epHEduung. th
    Lomme-di
    addihiema t e t a L o t uhunhu
    Btutp ut
    With the the ulationshup an be
    hlp edagham
    xpl aun-
    CLASSTIMEIPa No
    Date

    HC
    Ac

    *hunHCCAC, AC 4alls
    whun M(AC AL wilL bLLstat and it minin.
    umpount
    *|whun M2A C MLse.
    *Bth AC and HC ue but H iae dt a 4ol
    hale 14 empaed TeAt a uult H
    AteeptAA ompahed te A uwe

    R plain thulatimahip utuen AL4 AVC, HC

    *Ac >AVc by thu ameunt AFC


    KTh Vntital ditante bttureen AC and Avc uwe
    LonHnue to all uAth in mensein 0utput LaLS
    hgaputueen hum AEL whith Lontued ta
    deline wlth ALAe in 0utput.
    *AC and Avc wwe neien iniuetJath thn
    on_
    *Bath A andV AVE AHe V-ahaped due ta te
    au vaiable epoah on
    HC WC and At ve t theia
    minimum
    HC
    CLASSTIMEP Ne
    Date

    Lhyhy Acdelineushun uteutde tuase ?


    AFC alu t h usin stutputi
    itaseTFC i wnslattha ughsu
    ltangie
    he peduion
    AfC ehtaind u TEC
    in utasirg t p u

    Ed-4
    AfC Rup 0naluna, as the lewu
    Lat Inthuastbut neu bueme ere
    0 uult,AFC w e a Ltanale
    hupubela t meani,hat aua unde AL HLe
    MLmain&ameat diuyennt AAnts.

    uthyi th A/L u t uith in heutput

    AV 2n o unit arinble at
    puzduutian,
    Avc =V

    Av uwe initiallp alla in aua1ein uaut


    Onu the utput Hiue with ptimal value,
    aising
    AV MLE U-shaped dur Te the Applitatien
    Jauz
    Jauz vaiable AMRqAMHen niHally M uwe
    all du t ininease nutuun at uith
    h t iliaatism ted and Vaaiable
    auen Att UaLhinq i minimal Jevel Mc
    Xtaat intueasing- wlh wux nULwaing stut
    aiminishing-
    CLASSTIME P

    Date

    NC

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