Table of Contents
Production and Cost
Economic Cost
Accounting versus Economic Cost
Accounting versus Economic Cost
Short-run versus Long-run Decisions
Diminishing Returns and Marginal Cost
The Firm’s Short-run Production Function
Labor Input and Output
Labor Input and Output
Short-run Production Costs
Short-Run Production Costs
Short-run Total Cost
Short-run Average Total Cost
Short-run Marginal Cost
Diminishing Returns and Increasing Marginal Cost
Short-run Average and Marginal Costs: An Example
Summary of Short-run Production Costs
A Closer Look at Short-run Production Costs
Short-run Average Total Cost (SATC)
Average Total Cost is the Sum of Average Variable and Average Fixed Cost
Short-run Average Total Cost (SATC)
Diminishing Returns and Increasing Marginal Cost
Relationship between Short-run Marginal and Average Cost Curves
Relationship between Short-run Marginal and Average Cost Curves
Production and Cost in the Long Run
Long-run Average Cost
Indivisible Inputs
Examples of Indivisible Inputs
Long-run Average Cost
Labor Specialization
Economies of Scale
Minimum Efficient Scale
Diseconomies of Scale
Examples of Economies of Scale
Examples of Economies of Scale
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