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Dilfraz Singh, Lovely Professional University Unit-9: Theory of Cost and Revenue

Notes
Unit-9: Theory of Cost and Revenue

CONTENTS
Objectives

Introduction

9.1 Concepts of Cost
9.2 Costs in the Short Run

9.3 Total Cost
9.4 Relation Among Total Cost, Total Fixed Cost and Total Variable Cost

9.5 Average Cost

9.6 Why is the Short Run Average Cost Curve ‘U’ Shaped?
9.7 Marginal Cost

9.8 Why is MC Curve ‘U’ Shaped?
9.9 Relation between Average Cost and Marginal Cost

9.10 Relationship of Different Cost Curves in the Short Period
9.11 Relationship between Cost Curves and Productivity Curves

9.12 Costs in Long Run

9.13 Long Run Total Cost—LTC
9.14 Long Run Average Cost Curve or Envelope Curve

9.15 Long Run Marginal Cost Curves
9.16 Modern Theory of Cost Curves

9.17 Long Run Marginal Cost Curves

9.18 Technical Change: The Very Long Run
9.19 Summary

9.20 Keywords
9.21 Review Questions

9.22 Further Readings

LOVELY PROFESSIONAL UNIVERSITY 171