Econ 103

Cost curves

Change in technology

Q VC1 FC1 TC1 Q AVC1 AFC1

0 0 500 500 0
0.25 212.0625 500 712.0625 0.25 848.25 2000
0.5 406.75 500 906.75 0.5 813.5 1000
0.75 584.8125 500 1084.8125 0.75 779.75 666.666667
1 747 500 1247 1 747 500
1.25 894.0625 500 1394.0625 1.25 715.25 400
1.5 1026.75 500 1526.75 1.5 684.5 333.333333
1.75 1145.8125 500 1645.8125 1.75 654.75 285.714286
2 1252 500 1752 2 626 250
2.25 1346.0625 500 1846.0625 2.25 598.25 222.222222
2.5 1428.75 500 1928.75 2.5 571.5 200
2.75 1500.8125 500 2000.8125 2.75 545.75 181.818182
3 1563 500 2063 3 521 166.666667
3.25 1616.0625 500 2116.0625 3.25 497.25 153.846154
3.5 1660.75 500 2160.75 3.5 474.5 142.857143
3.75 1697.8125 500 2197.8125 3.75 452.75 133.333333
4 1728 500 2228 4 432 125
4.25 1752.0625 500 2252.0625 4.25 412.25 117.647059
4.5 1770.75 500 2270.75 4.5 393.5 111.111111
4.75 1784.8125 500 2284.8125 4.75 375.75 105.263158
5 1795 500 2295 5 359 100
5.25 1802.0625 500 2302.0625 5.25 343.25 95.2380952
5.5 1806.75 500 2306.75 5.5 328.5 90.9090909
5.75 1809.8125 500 2309.8125 5.75 314.75 86.9565217
6 1812 500 2312 6 302 83.3333333
6.25 1814.0625 500 2314.0625 6.25 290.25 80
6.5 1816.75 500 2316.75 6.5 279.5 76.9230769
6.75 1820.8125 500 2320.8125 6.75 269.75 74.0740741
7 1827 500 2327 7 261 71.4285714
7.25 1836.0625 500 2336.0625 7.25 253.25 68.9655172
7.5 1848.75 500 2348.75 7.5 246.5 66.6666667
7.75 1865.8125 500 2365.8125 7.75 240.75 64.516129
8 1888 500 2388 8 236 62.5
8.25 1916.0625 500 2416.0625 8.25 232.25 60.6060606
8.5 1950.75 500 2450.75 8.5 229.5 58.8235294
8.75 1992.8125 500 2492.8125 8.75 227.75 57.1428571
9 2043 500 2543 9 227 55.5555556
9.25 2102.0625 500 2602.0625 9.25 227.25 54.0540541
9.5 2170.75 500 2670.75 9.5 228.5 52.6315789
9.75 2249.8125 500 2749.8125 9.75 230.75 51.2820513
10 2340 500 2840 10 234 50
10.25 2442.0625 500 2942.0625 10.25 238.25 48.7804878
10.5 2556.75 500 3056.75 10.5 243.5 47.6190476
10.75 2684.8125 500 3184.8125 10.75 249.75 46.5116279
11 2827 500 3327 11 257 45.4545455
11.25 2984.0625 500 3484.0625 11.25 265.25 44.4444444
11.5 3156.75 500 3656.75 11.5 274.5 43.4782609
11.75 3345.8125 500 3845.8125 11.75 284.75 42.5531915
12 3552 500 4052 12 296 41.6666667
12.25 3776.0625 500 4276.0625 12.25 308.25 40.8163265
12.5 4018.75 500 4518.75 12.5 321.5 40
12.75 4280.8125 500 4780.8125 12.75 335.75 39.2156863
13 4563 500 5063 13 351 38.4615385
13.25 4866.0625 500 5366.0625 13.25 367.25 37.7358491
13.5 5190.75 500 5690.75 13.5 384.5 37.037037
13.75 5537.8125 500 6037.8125 13.75 402.75 36.3636364
14 5908 500 6408 14 422 35.7142857
14.25 6302.0625 500 6802.0625 14.25 442.25 35.0877193
14.5 6720.75 500 7220.75 14.5 463.5 34.4827586
14.75 7164.8125 500 7664.8125 14.75 485.75 33.8983051
15 7635 500 8135 15 509 33.3333333
15.25 8132.0625 500 8632.0625 15.25 533.25 32.7868852
15.5 8656.75 500 9156.75 15.5 558.5 32.2580645
15.75 9209.8125 500 9709.8125 15.75 584.75 31.7460317
16 9792 500 10292 16 612 31.25

FC, VC, TC
4500
4000
3500
3000
2500
2000
1500
1000
500
0
0 2 4 6 8 10 12 14

VC1 FC1 TC1

AFC, AVC, ATC1 curves

3000

2500

2000

1500

1000
1500

1000

500

0
0 2 4 6 8 10 12 14 16

AVC1 AFC1 ATC1

 ATC1 Q VC2 FC2
0 0 1200
2848.25 0.25 134.390625 1200
1813.5 0.5 257.875 1200
1446.41667 0.75 370.921875 1200
1247 1 474 1200
1115.25 1.25 567.578125 1200
1017.83333 1.5 652.125 1200
940.464286 1.75 728.109375 1200
876 2 796 1200
820.472222 2.25 856.265625 1200
771.5 2.5 909.375 1200
727.568182 2.75 955.796875 1200
687.666667 3 996 1200
651.096154 3.25 1030.45313 1200
617.357143 3.5 1059.625 1200
586.083333 3.75 1083.98438 1200
557 4 1104 1200
529.897059 4.25 1120.14063 1200
504.611111 4.5 1132.875 1200
481.013158 4.75 1142.67188 1200
459 5 1150 1200
438.488095 5.25 1155.32813 1200
419.409091 5.5 1159.125 1200
401.706522 5.75 1161.85938 1200
385.333333 6 1164 1200
370.25 6.25 1166.01563 1200
356.423077 6.5 1168.375 1200
343.824074 6.75 1171.54688 1200
332.428571 7 1176 1200
322.215517 7.25 1182.20313 1200
313.166667 7.5 1190.625 1200
305.266129 7.75 1201.73438 1200
298.5 8 1216 1200
292.856061 8.25 1233.89063 1200
288.323529 8.5 1255.875 1200
284.892857 8.75 1282.42188 1200
282.555556 9 1314 1200
281.304054 9.25 1351.07813 1200
281.131579 9.5 1394.125 1200
282.032051 9.75 1443.60938 1200
284 10 1500 1200
287.030488 10.25 1563.76563 1200
291.119048 10.5 1635.375 1200
296.261628 10.75 1715.29688 1200
302.454545 11 1804 1200
309.694444 11.25 1901.95313 1200
317.978261 11.5 2009.625 1200
327.303191 11.75 2127.48438 1200
337.666667 12 2256 1200
349.066327 12.25 2395.64063 1200
361.5 12.5 2546.875 1200
374.965686 12.75 2710.17188 1200
389.461538 13 2886 1200
404.985849 13.25 3074.82813 1200
421.537037 13.5 3277.125 1200
439.113636 13.75 3493.35938 1200
457.714286 14 3724 1200
477.337719 14.25 3969.51563 1200
497.982759 14.5 4230.375 1200
519.648305 14.75 4507.04688 1200
542.333333 15 4800 1200
566.036885 15.25 5109.70313 1200
590.758065 15.5 5436.625 1200
616.496032 15.75 5781.23438 1200
643.25 16 6144 1200

Comparing the 2 AT
6000

5000

4000

3000

2000

1000

0
0 2 4 6
14 16 18
 TC2 Q AVC2 AFC2 ATC2 ATC2-ATC1
1200 0
1334.39063 0.25 537.5625 4800 5337.5625 2489.3125
1457.875 0.5 515.75 2400 2915.75 1102.25
1570.92188 0.75 494.5625 1600 2094.5625 648.145833
1674 1 474 1200 1674 427
1767.57813 1.25 454.0625 960 1414.0625 298.8125
1852.125 1.5 434.75 800 1234.75 216.916667
1928.10938 1.75 416.0625 685.714286 1101.77679 161.3125
1996 2 398 600 998 122
2056.26563 2.25 380.5625 533.333333 913.895833 93.4236111
2109.375 2.5 363.75 480 843.75 72.25
2155.79688 2.75 347.5625 436.363636 783.926136 56.3579545
2196 3 332 400 732 44.3333333
2230.45313 3.25 317.0625 369.230769 686.293269 35.1971154
2259.625 3.5 302.75 342.857143 645.607143 28.25
2283.98438 3.75 289.0625 320 609.0625 22.9791667
2304 4 276 300 576 19
2320.14063 4.25 263.5625 282.352941 545.915441 16.0183824
2332.875 4.5 251.75 266.666667 518.416667 13.8055556
2342.67188 4.75 240.5625 252.631579 493.194079 12.1809211
2350 5 230 240 470 11
2355.32813 5.25 220.0625 228.571429 448.633929 10.1458333
2359.125 5.5 210.75 218.181818 428.931818 9.52272727
2361.85938 5.75 202.0625 208.695652 410.758152 9.05163043
2364 6 194 200 394 8.66666667
2366.01563 6.25 186.5625 192 378.5625 8.3125
2368.375 6.5 179.75 184.615385 364.365385 7.94230769
2371.54688 6.75 173.5625 177.777778 351.340278 7.5162037
2376 7 168 171.428571 339.428571 7
2382.20313 7.25 163.0625 165.517241 328.579741 6.36422414
2390.625 7.5 158.75 160 318.75 5.58333333
2401.73438 7.75 155.0625 154.83871 309.90121 4.63508065
2416 8 152 150 302 3.5
2433.89063 8.25 149.5625 145.454545 295.017045 2.16098485
2455.875 8.5 147.75 141.176471 288.926471 0.60294118
2482.42188 8.75 146.5625 137.142857 283.705357 -1.1875
2514 9 146 133.333333 279.333333 -3.22222222
2551.07813 9.25 146.0625 129.72973 275.79223 -5.51182432
2594.125 9.5 146.75 126.315789 273.065789 -8.06578947
2643.60938 9.75 148.0625 123.076923 271.139423 -10.8926282
2700 10 150 120 270 -14
2763.76563 10.25 152.5625 117.073171 269.635671 -17.3948171
2835.375 10.5 155.75 114.285714 270.035714 -21.0833333
2915.29688 10.75 159.5625 111.627907 271.190407 -25.0712209
3004 11 164 109.090909 273.090909 -29.3636364
3101.95313 11.25 169.0625 106.666667 275.729167 -33.9652778
3209.625 11.5 174.75 104.347826 279.097826 -38.8804348
3327.48438 11.75 181.0625 102.12766 283.19016 -44.1130319
3456 12 188 100 288 -49.6666667
3595.64063 12.25 195.5625 97.9591837 293.521684 -55.5446429
3746.875 12.5 203.75 96 299.75 -61.75
3910.17188 12.75 212.5625 94.1176471 306.680147 -68.2855392
4086 13 222 92.3076923 314.307692 -75.1538462
4274.82813 13.25 232.0625 90.5660377 322.628538 -82.3573113
4477.125 13.5 242.75 88.8888889 331.638889 -89.8981481
4693.35938 13.75 254.0625 87.2727273 341.335227 -97.7784091
4924 14 266 85.7142857 351.714286 -106
5169.51563 14.25 278.5625 84.2105263 362.773026 -114.564693
5430.375 14.5 291.75 82.7586207 374.508621 -123.474138
5707.04688 14.75 305.5625 81.3559322 386.918432 -132.729873
6000 15 320 80 400 -142.333333
6309.70313 15.25 335.0625 78.6885246 413.751025 -152.285861
6636.625 15.5 350.75 77.4193548 428.169355 -162.58871
6981.23438 15.75 367.0625 76.1904762 443.252976 -173.243056
 7344 16 384 75 459 -184.25

Comparing the 2 ATC curves after a change in technology

2 4 6 8 10 12 14 16 18

ATC1 ATC2
FC 100
AFC
Q AFC 120

0 100
1 100
80
2 50
3 33.333333333 60

4 25
40
5 20
20
6 16.666666667
0
0 1 2 3 4 5
 AFC

3 4 5 6 7
Labour Total product APL MPL T
0 0 120
1 8 8 8
100
2 20 10 12
3 42 14 22 80

4 68 17 26
60
5 90 18 22
40
6 102 17 12
7 112 16 10 20

8 112 14 0
0
0 1 2 3

APL a
30

25

20

15

10

0
0 1 2 3
 Total product

1 2 3 4 5 6 7 8 9

APL and MPL curves

1 2 3 4 5 6 7 8 9

APL MPL