Chapter Sixteen:

Production Costs

Types of Production Costs

Table 16.1: Gail’s Costs of Farming

The Production Function

Table 16.2: Corn Production Function

Figure 16.1: Corn Production Function

Table 16.3: Calculating Marginal Product

Figure 16.2: Total Product Curves with Constant and Increasing Marginal Returns

Figure 16.3: A Total Product Curve with Increasing, Constant, and Decreasing Returns

Table 16.4: Fixed, Variable, and Marginal Costs

Figure 16.4: The Total Cost Curve for Corn

Table 16.5: Marginal Cost of Corn Production

Figure 16.5: A Possible Pattern of Costs

Figure 16.6: A Possible Pattern of Long-Run Average Costs