Review of Cost Functions and Supply Curve

Figure 1 Economists versus Accountants

Table 1 A Production Function and Total Cost: Hungry Helen’s Cookie Factory

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Figure 2 Hungry Helen’s Production Function

Figure 3 Hungry Helen’s Total-Cost Curve

Table 2 The Various Measures of Cost: Thirsty Thelma’s Lemonade Stand

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Figure 4 Thirsty Thelma’s Total-Cost Curve

Figure 5 Thirsty Thelma’s Average-Cost and Marginal Cost Curves

Figure 6 Big Bob’s Cost Curves

Figure 6a Big Bob’s Cost Curves

Figure 6b Big Bob’s Cost Curves

Table 3 The Many Types of Cost: A Summary

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Table 1 Total, Average, and Marginal Revenue for a Competitive Firm

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Table 2 Profit Maximization: A Numerical Example

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Figure 1 Profit Maximization for a Competitive Firm

Figure 2 Marginal Cost as the Competitive Firm’s Supply Curve

Figure 3 The Competitive Firm’s Short-Run Supply Curve

Figure 4 The Competitive Firm’s Long-Run Supply Curve

Figure 5a Profit as the Area between Price and Average Total Cost

Figure 5b Profit as the Area between Price and Average Total Cost

Figure 6a Market Supply with a Fixed Number of Firms

Figure 6b Market Supply with a Fixed Number of Firms