Chapter 6 Cost and Choice. Copyright © 2001 Addison Wesley LongmanSlide 6- 2 Figure 6.1 A Simplified Jam-Making Technology

Chapter 6

Cost and Choice

Copyright © 2001 Addison Wesley Longman

Slide 6- 2

Figure 6.1 A Simplified Jam-Making Technology


Slide 6- 3

Figure 6.2 The Cost Function for Our Simplified Jam-Making Technology


Slide 6- 4

Figure 6.3 The Jam-Making Technology


Slide 6- 5

Figure 6.4 Isocost Curves and the Optimal Combination of Inputs


Slide 6- 6

Figure 6.5 Isocosts and Isoquants


Slide 6- 7

Figure 6.6 A Long-Run Cost Function


Slide 6- 8

Figure 6.7 The Optimal Combination of Inputs in the Short Run


Slide 6- 9

Figure 6.8 The Leontief Production Function


Slide 6- 10

Figure 6.9 Optimal Input Combinations in the Leontief Technology


Slide 6- 11

Figure 6.10 A Cost Function Associated with the Leontief Technology


Slide 6- 12

Figure 6.11 Isoquants Associated with the Cobb-Douglas Technology


Slide 6- 13

Figure 6.12 Cobb-Douglas Production Function


Slide 6- 14

Figure 6.13 The Elasticity of Substitution


Slide 6- 15

Figure 6.14(a) Long- and Short-Run Production Functions


Slide 6- 16

Figure 6.14(b) Long- and Short-Run Production Functions


Slide 6- 17

Figure 6.15(a) Short-Run Cost Function


Slide 6- 18

Figure 6.15(b) Short-Run Cost Function


Slide 6- 19

Figure 6.16 Some Short-Run Average Cost Curves


Slide 6- 20

Figure 6.17 Short-Run Total Cost Functions and a Long-Run Total Cost Function


Slide 6- 21

Figure 6.18 The Long-Run and Average Cost Curve


Slide 6- 22

Figure 6.19 Long-Run and Short-Run Cost Functions


Slide 6- 23

Figure 6.20 The Relationship between Long-Run and Short-Run Marginal Cost Functions


Slide 6- 24

Figure 6.21 Long-Run and Short-Run Marginal Costs

Documents

Chapter 6 Cost and Choice. Copyright © 2001 Addison Wesley LongmanSlide 6- 2 Figure 6.1 A Simplified Jam-Making Technology