TAILIEUCHUNG - Lecture Business economics - Lecture 8: The costs of production - II

The following will be discussed in this chapter: What are costs? costs as opportunity costs, production and costs, various measures of cost, costs in the short run and in the long run. | Review of the previous lecture The goal of firms is to maximize profit, which equals total revenue minus total cost. When analyzing a firm’s behavior, it is important to include all the opportunity costs of production. Some opportunity costs are explicit while other opportunity costs are implicit. A firm’s costs reflect its production process. Linear production function: inputs are perfect substitutes. Review of the previous lecture Leontief production function: inputs are used in fixed proportions. Cobb-Douglas production function: inputs have a degree of substitutability. A typical firm’s production function gets flatter as the quantity of input increases, displaying the property of diminishing marginal product. Lecture 8 The Costs of Production- II Instructor: Abbas Course code: ECO 400 Lecture Outline Various Measures of Cost Costs in the Short Run and in the Long Run The Various Measures of Cost Costs of production may be divided into fixed costs and variable .

• Kinh tế học
• Business economics
• Lecture Business economics
• Business applications of economics
• Open economy
• Competitive markets
• Economic Models
• Principles of economics
• Economics of agriculture
• Monopolistic competition
• Macroeconomic policy
• Supply curve
• Elasticity of demand
• Consumer choice
• Competitive firms
• Imperfect competition
• Gross domestic product
• Financial intermediaries
• Productivity growth
• Natural rate of unemployment
• Labor force
• Money supply