Firm Costs - Review Sheet - Economics in Public and Nonprofit Sectors | UAPP 834, Study notes of Public Policy

Download Firm Costs - Review Sheet - Economics in Public and Nonprofit Sectors | UAPP 834 and more Study notes Public Policy in PDF only on Docsity! UAPP 834 Public Economics Fall 1999 Chapter 11, Firm Costs 1. Review drawing the typical short run average cost curves of a firm quickly and accurately. 2. Review drawing the typical long run average cost curves of a firm quickly and accurately. 3. Understand how the long run cost curves illustrate increasing, constant and decreasing returns to scale and the idea of optimal scale in the production of public goods. Costs ($’s) Q, Output Physical Units (not $’s) ATC=AVC+AFC AVC LRATC MC Min MC Min AVC Min ATC Q1 C1 C2 Q2 C3