ECO100 Chapter Notes - Chapter CH1: Isocost, Average Variable Cost, Marginal Cost
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The price of that capital, which we"ll call r. the amount of hours of work you use times the wage per hour, or workers times the salary per year capital is harder. we call r. We have k bar amount of capital plus 5q squared over k bar. so for example,, for a fixed level of capital, this is cost The marginal cost is delta c delta q, the cost of producing the next unit. the more you produce, the higher your marginal cost average cost is 10 over q plus. I just divided this by q where it "s first declining and then increasing. the average is simply over the entire range of production. average fixed costs are. There is a really close relationship between marginal cost and the marginal product of labor The marginal cost of production is equal to delta c over delta q. making another unit with a super productive worker is cheap.
