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Cost in the Short Run
Marginal Cost (or MC) is the cost of expanding output by one unit. As fixed costs have no impact on marginal cost, it can be given as: Average Total Cost (or ATC) is the cost per unit of output, or average fixed cost (or AFC) plus average variable cost (or AVC). This can be written: Average Total Cost (or ATC) is the cost per unit of output, or average fixed cost (or AFC) plus average variable cost (or AVC). This can be written:
Which of the following is evidence of market power? a. Output is fixed despite cost changes b. Optimal Output is less than industry output c. Output changes as cost changes
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a description of engineering production function
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