5: Costs of Production

Microeconomics 1e · LibreTexts

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    From LibreTexts, under CC BY-NC-SA 4.0, as the source states it; its equations are written in TeX, which the PDF shows typeset. This page at LibreTexts.

    Learning Objectives

    Upon completion of this module, you will be able to:

    • Understand how the relationship of inputs to the capacity to produce output can be represented as a production table and as a graph of a production function.
    • Know the relationship between the production function and cost curves, specifically, the relationship between marginal physical production and marginal cost.
    • Be able to distinguish between the short-run and the long-run in examining production functions, between fixed and variable costs, and between diminishing returns and economies of scale.
    • Know how to calculate marginal and average costs from data on total cost.

    This page titled 5: Costs of Production was last modified on Wed, 10 Jul 2024 19:59:50 GMT and is shared under a CC BY-NC-SA 4.0 license and was authored, remixed, and/or curated by Martin Medeiros.