modern theory of cost | l shape LMC and LAC | saucer shaped cost curve скачать в хорошем качестве

modern theory of cost | l shape LMC and LAC | saucer shaped cost curve

modern theory of cost | l shape LMC and LAC | saucer shaped cost curve welcome to mahavidya economicsschool CONNENT WITH US WHATSAPP : http://wa.me/918595074500 APPLICATION : https://play.google.com/store/apps/de... WEBSITE : https://vishnueconomicsschool.in FACEBOOK :   / mahavidyaeconomicsschool   INSTAGRAM :   / mahavidyaeconomicsschool   TWITTER :   / mahavidyaschool   TELEGRAM :https://t.me/mahavidyaeconomicsschool YOUTUBE :    / @mahavidyaeconomicsschool      / @mahavidyaignoueconomics   UGC NET ECONOMICS, ugc net 2023, ugc net, economics ugc net, ugc net economics 2023, ugc net economics classes, pgt economics, emrs pgt economics, dsssb pgt economics ,cuet pg economics , cuet exam date 2024, cuet exam 2024, cuet 20234, cuet, assistant professor economics, rpsc assistant professor economics, rpsc assistant professor economics strategy, assistant professor vacancy DEMO ENGLISH MEDIUM MICROECONOMICS    • MICROECONOMICS   MACROECONOMICS    • MACROECONOMICS   INTERNATIONAL ECONOMICS    • INTERNATIONAL ECONOMICS   PUBLIC FINANCE    • PUBLIC FINANCE   STATISTICS    • statistics   Environmental Economics    • environmental economics   ECONOMIC GROWTH AND DEVELOPMENT    • ECONOMIC GROWTH AND DEVELOPMENT   HINDI MEDIUM 1 व्यष्टि अर्थशास्त्र    • UGC NET ECONOMICS ( HINDI MEDIUM )   2 समष्टि अर्थशास्त्र    • 2 समष्टि अर्थशास्त्र   3 अंतरराष्ट्रीय व्यापार    • 3 अंतरराष्ट्रीय व्यापार   4 लोक वित्त    • 4 लोक वित्त   5 मुद्रा एवं बैंकिंग    • 5 मुद्रा एवं बैंकिंग   7 भारतीय अर्थव्यवस्था    • 7 भारतीय अर्थव्यवस्था   पर्यावरणीय अर्थशास्त्र    • 6 पर्यावरणीय अर्थशास्त्र   8 जनांकिकी    • 8 जनांकिकी   9 सांख्यिकी    • 9 सांख्यिकी   • Morden theory of cost has been provided by economists like Stigler, Andrews, Sargent, Florence Friedman etc. • According to the traditional theory of costs, costs are of 'U-shape. But according to modern economists, in real life cost curves are L-shaped. These are also called empirical curves. • The Modern theory suggests the existence of ‘built-in-reserve capacity ‘which imparts flexibility and enables the plant to produce larger output without adding to the costs. The businessman wants to have some reserve capacity for various reasons. i. To meet seasonal and cyclical fluctuations in demand. ii. It gives the businessman greater flexibility for repairs of broken-down machinery without disturbing the smooth flow of the production process. iii. It gives greater freedom to the entrepreneurs to expand output if demand increases. Technology makes it necessary to build into the plant some reserve capacity. Short-run cost curve Like traditional theory, modern theory also studies four types of short-run cost curves Average fixed cost, Average variable cost, Average cost, and marginal cost. 1. Average Variable Cost: The short-run average variable cost curve in modern microeconomic theory is saucer-shaped, that is, it is broadly U-shaped but has a flat stretch over a range of output. This flat stretch represents the built-in reserve capacity of the plant. 2. Average Fixed Cost: Same As in the traditional theory of cost, the average fixed costs in modern microeconomics, are also plotted as a rectangular hyperbola. 3. Average Cost: The short-run Average costs consist of the Average fixed costs and Average variable costs. The AFC curve is a rectangular hyperbola and the AVC curve first falls and then becomes horizontal within the range of reserve capacity. Beyond that, it starts rising steeply. Short-Run Average Cost Curve. According to modern economists, the short-run Average Cost Curve continuously falling up to a given level of output represents reserved capacity output. After that, the average cost curve rises upward. 4. Short-Run Marginal Cost Curve: In the initial stages, SMC, to modern economists falls and MC lies below AVC. From point A to B, marginal cost becomes horizontal and equal to AVC In this situation, production takes place under reserved capacity. After point B, MC rises above the AVC.