Short-Run Production and Cost Curves

Requires a Wolfram Notebook System

Interact on desktop, mobile and cloud with the free Wolfram CDF Player or other Wolfram Language products.

Requires a Wolfram Notebook System

Edit on desktop, mobile and cloud with any Wolfram Language product.

The standard cubic short-run production function, with input and output , exhibits increasing returns with respect to the input variable over some low range of . However, as more of the input is used, eventually diminishing returns set in. This production function results in the typical U-shaped average and marginal cost curves. The relative importance of increasing versus diminishing returns (the quadratic and cubic terms in the production function) determines the shapes of the cost curves. If there are neither increasing nor diminishing returns, the production function is linear and the average and marginal cost curves are equal and constant.

Contributed by: Tom Creahan ( {MonthName, Year, Day})
Open content licensed under CC BY-NC-SA


Snapshots


Details

detailSectionParagraph


Permanent Citation

Tom Creahan "Short-Run Production and Cost Curves"
http://demonstrations.wolfram.com/ShortRunProductionAndCostCurves/
Wolfram Demonstrations Project
Published:  Part[DateValue[, {MonthName, Year, Day}], 3] {MonthName, Year, Day}

Feedback (field required)
Email (field required) Name
Occupation Organization
Note: Your message & contact information may be shared with the author of any specific Demonstration for which you give feedback.
Send