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12 Cards in this Set
- Front
- Back
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draw tp curve and label axis
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x units input y=units output
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draw corresponding AP and MP
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label where tp goes neg, where max avg, y=units output/unit input x=unit input.
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how to find avg product
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ap at any point on the tp curve is the slope of a ray from the origin to that point on the curve.
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how to find MP from tp curve
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mp is the same as the slope of that point on the tp curve.
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how to find max ap on tp curve
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take a straight line to where it touches the top of the tp curve is max bc this tangency , where mp=ap and this is also max avg.
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draw TC, TVC, TFC
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x=output
y=total cost |
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draw mc, avc, afc, atc
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x=output y=cost/unit
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points of tangency show 2 things
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the maximum output for that cost, the least costly way to get that output.
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Draw Isoquant and Isocost
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labels are 2 inputs
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draw LTC
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x=output
y=cost |
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draw LMC and LAC
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x=output
y=output |
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Draw 2 average cost lines, showing economies of scale and learning by doing.
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