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Lecture 14

ECON 1000 Lecture Notes - Lecture 14: Marginal Product, Production Function, Average Cost


Department
Economics
Course Code
ECON 1000
Professor
Paul Haddow
Lecture
14

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Ch 13: The costs of producon
Prot= Total Revenue – Total Cost
The amount a rm receives for the sale of its output
Implicit Costs: input costs that require an outlay of money by the rm
Ex. Opportunity costs such as wages the rm owner gives up by working in the rm
rather than taking another job
Explicit Costs: input costs that do not require an outlay of money by the rm
Ex. Opportunity costs such as the wages a rm pays its workers
How an Economist Views a Firm
The market value of the inputs a rm uses
in producon
Economic
Prot
Implicit
Costs
Revenue Total Opportunity Cost
Explicit
Costs
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