ECONOMICS 5 e Roger Arnold CHAPTER 21 Production

ECONOMICS, 5 e Roger Arnold CHAPTER 21 Production and Costs

Exhibit 1 Accounting and Economic Profit Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 221

Exhibit 2 Periods of Production, Inputs, and Costs Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 222

Exhibit 3 a Total, Average, and Marginal Costs Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 223

Exhibit 3 b Total, Average, and Marginal Costs (Continued) Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 224

Exhibit 4 The Law of Diminishing Marginal Returns Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 225

Exhibit 5 Marginal Physical Product and Marginal Cost Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 226

Exhibit 6 Average and Marginal Cost Curves Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 227

Exhibit 7 Tying Products to Costs Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 228

Exhibit 8 Long-Run Average Total Cost Curve (LRATC) Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 229

Exhibit 9 Minimum Efficient Scale (MES) for Six Industries SOURCE: F. M. Scherer, Alan Bechenstein, Erich Kaufer, and R. D. Murphy, The Economics of Multiplant Operation (Cambridge, Mass. : Harvard University Press, 1975), p. 80. Arnold Economics, 5 e / Ch. 21 Production and Costs © 2001 South-Western College Publishing 230