Fifth Edition Economics

1
Fifth EditionEconomics A Contemporary
Introduction William A. McEachern Production and
Cost in the Firm
2
Exhibit 3 The Total and Marginal Product of
Labor
3
Exhibit 5 Total and MarginalCost Curves
(a) Total Cost Curves
4
Exhibit 7 Average and Marginal Cost Curves for
Smoother Mover
5
Exhibit 8 Short-Run Cost Curves and the
Long-Run Planning Curve
6
Exhibit 9 Family of Many Short-Run Cost Curves
Forming a Firms Long-Run Planning Curve
7
Exhibit 10 A Firms Long-Run Average Cost Curve
Long-run average cost
Cost per unit
Output per period
B
A
0
Economies of scale
Constant average cost
Diseconomies of scale
8
Exhibit 12 Isoquants
9
Exhibit 13 Firms Isocost Lines
h
t
n
o
m
w r
1,500 2,500

Slope 0.6
r
10
e
p


l
a

t
i
p



a
c


5
f
TC22,500
o



TC19,500
s
t
i
TC15,000
n
U
0
5
10
15
Units of labor per month
10
Exhibit 14 Optimal Combinations of Inputs
11
Exhibit 15 Isoquants