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Ch. 10 - The Costs of ProductionWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Microeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Floors
Ch. 6 - Introduction to Taxes and Subsidies
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - The Costs of Production
Ch. 11 - Perfect Competition
Ch. 12 - Monopoly
Ch. 13 - Monopolistic Competition
Ch. 14 - Oligopoly
Ch. 15 - Markets for the Factors of Production
Ch. 16 - Income Inequality and Poverty
Ch. 17 - Asymmetric Information, Voting, and Public Choice
Ch. 18 - Consumer Choice and Behavioral Economics
Revenue, Cost, and Profit
The Production Function and Diminishing Returns
Marginal Cost
The Relationship Between Average Cost and Marginal Cost
Graphing Costs
Average Total Cost: Short Run and Long Run
Isoquant Lines
Isocost Lines
Cost-Minimizing Combination of Labor and Capital
The marginal cost of watching another video is really low, but that marginal benefit is through the roof!

Concept #1: Marginal Cost

Practice: Donny Saltlife shapes surfboards in Hawaii. He leases two production machines, paying $300 each per week. He cannot increase the number of machines he leases in his contract. He can hire as many workers as he wants at a cost of $400 per week. These are his only two inputs to produce surfboards. Fill in the remaining columns in the table below.

Practice: A firm that sells headphones has the following average total cost schedule: The company currently produces and sells 600 units. A desperate customer calls and offers $550 for a pair of headphones. Should the company accept the offer?