9781118041581

240 Chapter 6 Cost Analysis

FIGURE 6.2

A Firm’s Average and

Marginal Costs

64

0 60

Output (Thousands of Units)

Cost/Unit (Thousands of Dollars)

44

48

52

56

5 10 15 20 25 3530 40 45 50 55

SMC

SAC

60

Annual Output Total Cost Average Cost Marginal Cost

(Repairs Thousands) (Thousands of Dollars) (Dollars/Unit) (Dollars/Unit)

0 270.0 

31.5

5 427.5 85.5

34.5

10 600.0 60

37.5

15 787.5 52.5

40.5

20 990.0 49.5

43.5

25 1,207.5 48.3

46.5

30 1,440.0 48

49.5

35 1,687.5 48.2

52.5

40 1,950.0 48.8

55.5

45 2,227.5 49.5

58.5

50 2,520.0 50.4

61.5

55 2,827.5 51.4

64.5

60 3,150.0 52.5

c06CostAnalysis.qxd 9/29/11 1:46 PM Page 240