The Costs of Production
The Firm’s Objective
A Firm’s Total Revenue and Total Cost
A Firm’s Profit
Costs as Opportunity Costs
Explicit and Implicit Costs
Economic Profit versus Accounting Profit
A Production Function and Total Cost
The Production Function
Marginal Product
Diminishing Marginal Product
A Production Function...
From the Production Function to the Total-Cost Curve
Total-Cost Curve...
The Various Measures of Cost
Fixed and Variable Costs
Family of Total Costs
Average Costs
Family of Average Costs
Marginal Cost
Average-Cost and Marginal-Cost Curves...
Cost Curves and Their Shapes
Relationship Between Marginal Cost and Average Total Cost
The Various Measures of Cost Big Bob’s Bagel Bin
Big Bob’s Cost Curves...
Three Important Properties of Cost Curves
Costs in the Long Run
Average Total Cost in the Short and Long Runs...
Economies and Diseconomies of Scale
Summary
PPT Slide
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Home Page: http://cameron.edu/~abduls