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Optimal Level of Output and Long Run Price

  • Shapoor ValiEmail author
Chapter
Part of the Mathematics Textbooks for Science and Engineering book series (MTSE, volume 3)

Abstract

The cost structure of a firm is reflected in its costs functions: total cost TC; average cost AC; and marginal cost MC. Total cost, the sum of total variable and total fixed costs, is generally expressed as a function of the level of output Q. While a firm’s production function is often a bivariate or multivariate function relating its output to various inputs, the cost functions are usually univariate functions relating different costs to only one variable, output. It is therefore much easier to specify and estimate various cost functions for a firm than specify and estimate its production function.

Keywords

Demand Function Demand Curve Marginal Revenue Quadratic Cost Function Total Cost Function 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Atlantis Press and the authors 2014

Authors and Affiliations

  1. 1.Department of EconomicsFordham UniversityNew YorkUSA

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