AYB301 Lecture Notes - Lecture 11: Market Structure, Oligopoly, Social Cost
Document Summary
Module structure: outline the nature of production as the relationship between outputs (outputs = f[input], use production function to help determine the shape of the cost relationship of the firm (costs = f[outputs], examine the role of diminishing returns to input use is a key factor in costs of production, especially in the short run, examine the short and long run distinction in cost. If each firm is maximizing total profits: how much output is each individual firm prepared to supply to the market (each competitive firm"s individual supply curve, how much is supplied to the market by all the firms (market supply curve, how does the answer to these differ in the short run and the long run (the moment we concentrate on the short run, where the cost structure of the individual firms are all in place and include a fix costs component)
