Long-run cost curves

Long-run cost curves

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 6: Cost and Revenue Curves

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of long-run cost curves.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Derivation of average and marginal cost curves
• U-shaped, L-shaped and continuously falling average cost curves

Detailed Microsyllabus

1. Long-run cost derivation

   1. Choice among alternative production scales.
   2. Long-run average cost from short-run cost possibilities.
   3. Long-run marginal cost and its relationship to average cost.

2. Alternative long-run shapes

   1. U-shaped long-run average cost.
   2. L-shaped and continuously falling average-cost patterns.
   3. State the scale and technological conditions behind each representation.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.