Table7-2 Short-Run Costs: Fixed Capital and Variable Labour
Short-Run Cost Curves
Using the firm’s production relationships from Figure 7-1 , suppose the
price of labour is $20 per unit and the price of capital is $10 per unit. Also
suppose the firm has 10 units of capital (the fixed factor). The firm’s
resulting costs are shown in Table 7-2.
These cost schedules are computed from the product curves of Figure
1 , given the price of capital of $10 per unit and the price of labour of $20
per unit.