The Nature of Costs Explicit Costs Accounting Costs

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The Nature of Costs • Explicit Costs – Accounting Costs • Economic Costs –

The Nature of Costs • Explicit Costs – Accounting Costs • Economic Costs – Implicit Costs – Alternative or Opportunity Costs • Relevant Costs – Incremental Costs – Sunk Costs are Irrelevant Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Short-Run Cost Functions Total Cost = TC = f(Q) Total Fixed Cost = TFC

Short-Run Cost Functions Total Cost = TC = f(Q) Total Fixed Cost = TFC Total Variable Cost = TVC TC = TFC + TVC Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Short-Run Cost Functions Average Total Cost = ATC = TC/Q Average Fixed Cost =

Short-Run Cost Functions Average Total Cost = ATC = TC/Q Average Fixed Cost = AFC = TFC/Q Average Variable Cost = AVC = TVC/Q ATC = AFC + AVC Marginal Cost = TC/ Q = TVC/ Q Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Short-Run Cost Functions Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by

Short-Run Cost Functions Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All

Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Short-Run Cost Functions Average Variable Cost AVC = TVC/Q = w/APL Marginal Cost TC/

Short-Run Cost Functions Average Variable Cost AVC = TVC/Q = w/APL Marginal Cost TC/ Q = TVC/ Q = w/MPL Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Long-Run Cost Curves Long-Run Total Cost = LTC = f(Q) Long-Run Average Cost =

Long-Run Cost Curves Long-Run Total Cost = LTC = f(Q) Long-Run Average Cost = LAC = LTC/Q Long-Run Marginal Cost = LMC = LTC/ Q Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Derivation of Long-Run Cost Curves Power. Point Slides by Robert F. Brooker Copyright (c)

Derivation of Long-Run Cost Curves Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Relationship Between Long-Run and Short-Run Average Cost Curves Power. Point Slides by Robert F.

Relationship Between Long-Run and Short-Run Average Cost Curves Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Possible Shapes of the LAC Curve Power. Point Slides by Robert F. Brooker Copyright

Possible Shapes of the LAC Curve Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Learning Curves Average Cost of Unit Q = C = a. Qb Estimation Form:

Learning Curves Average Cost of Unit Q = C = a. Qb Estimation Form: log C = log a + b Log Q Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Minimizing Costs Internationally • • Foreign Sourcing of Inputs New International Economies of Scale

Minimizing Costs Internationally • • Foreign Sourcing of Inputs New International Economies of Scale Immigration of Skilled Labor Brain Drain Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Architecture of Ideal Firm • • • Core Competencies Outsourcing of Non-Core Tasks Learning

Architecture of Ideal Firm • • • Core Competencies Outsourcing of Non-Core Tasks Learning Organization Efficiency and Flexibility Location Near Markets Agility in Responding to Market Forces Power. Point Slides by Robert F. Brooker Copyright (c) 2001 by Harcourt, Inc. All rights reserved.

Costs Variable costs costs of Fixed costs costsCosts Variable costs costs of Fixed costs costs
Management Accounting Costing Management Accounting Management Accounting CostsManagement Accounting Costing Management Accounting Management Accounting Costs
Accounting and economic costs and profits Accounting AccountingAccounting and economic costs and profits Accounting Accounting
Explicit Instruction Sixteen elements of Explicit Instruction ByExplicit Instruction Sixteen elements of Explicit Instruction By
Explicit and Implicit Information Explicit Information is DirectExplicit and Implicit Information Explicit Information is Direct
Implicit vs Explicit Language Arts 9 EXPLICIT DETAILImplicit vs Explicit Language Arts 9 EXPLICIT DETAIL
SEQUEN CES EXPLICIT FORMULASLESSON 3 EXPLICIT FORMULAS AnSEQUEN CES EXPLICIT FORMULASLESSON 3 EXPLICIT FORMULAS An
Explicit Instruction Sixteen elements of Explicit Instruction ByExplicit Instruction Sixteen elements of Explicit Instruction By
Explicit Instruction Define the term explicit Think PairExplicit Instruction Define the term explicit Think Pair
What is Explicit Textual Evidence Explicit direct TextualWhat is Explicit Textual Evidence Explicit direct Textual
Explicit Application of Procedures and Explicit Evaluation ImplicitExplicit Application of Procedures and Explicit Evaluation Implicit
Explicit Implicit Belief Atoms Explicit Belief Atoms ofExplicit Implicit Belief Atoms Explicit Belief Atoms of