My notes, study guides and tips for the EC 201 Study Group endorsed by Dr. Craig
If you have any questions about Economics feel free to Email me at krodonne@ncsu.edu
Below are my TA's Hand Out - It's pretty good - Sorry, some of the photos are slightly out of focus.
TA's Lab Hand Out 1
TA's Lab Hand Out 2
TA's Lab Hand Out 3
TA's Lab Hand Out 4
TA's Lab Hand Out 5
TA's Lab Hand Out 6
TA's Lab Hand Out 7
* Note - Since "Pearson Custom Publishing" holds copyright to some of Dr. Craigs slide, I cannot legally reproced all of his classnotes on this site in whole. However, I will still post the "Core context" on the study guide -linked above.
Lab Notes: Friday, Nov 6 2008
- Short run - fixed inputs now - like planes for air company
- Long run - all short run things will become long run production items - over time airline can buy different planes, changing short run
- Marginal product of labor - The added output from hiring more workers
- Average product labor - total output / number of workers
- Law of diminishing returns - addition of labor to fixed costs will make less product with each additional product
- Fixed costs - cannot change now - like runway in aircraft example
- Varaible costs - can change easily if you want - hire more labor
- Total cost = Fixed cost + Variable cost
- Averace cost:
where Q is quantity produced
- Average Total Cost = TC / Q
- Average Fixed Cost = FC / Q
- Average Variable Cost = VC / Q
- Explicit cost - spending money - wages, bills, ect.
- Implicit costs - non-monetary expenses like opportunity cost
- Marginal cost - cost associated with increasing output by one unit - will intersect ATC and AVC curves at min
Qoutes: "It's not difficult," Zonan - Asain lab TA
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