A) Discuss the relationships and properties of cost measures, Total Cost, Average Cost, Marginal Cost and Variable cost, etc. How important are these cost measures in production decisions. Give some real-world examples from your workplace.
B1) Explain what could cause a shift in the short run Average Cost curve from SAC1 to SAC3. Does this scenario apply to products made by your firm?
Figure 1: short run average cost curves
[img src="http://farm4.staticflickr.com/3023/2397592798_63c7bbc129.jpg"> B2). Discuss the differences in following three Long Run Average Cost Curves (LRAC). Use the appropriate economic terminology. What is the shape of your company’s present LRAC? LRAC? Explain.