Cost Theory

Complete clean slide deck for Week 6. Covers basic cost concepts, labor vs capital costs, total cost functions, economic profit, short-run vs long-run costs, average and marginal costs, economies of scale, and the LRAC envelope. Use this for pre-lecture review.

Annotated deck for the first sub-session: basic cost concepts, labor vs capital costs, total costs, economic profit, total cost function, marginal costs, MC-AC relationship, and economies of scale.

Annotated deck for the second sub-session: time horizons, short-run costs, and average costs.

Annotated deck for the third sub-session: try-it-yourself minimisation, deriving the long-run AC from short-run AC, and example problems.