CAS EC 101 Chapter Notes - Chapter 7: Marginal Cost, Monopoly, Indian Railways
5 Feb 2015
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CAS EC 101 Full Course Notes
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Chapter 7: costs, revenue and profit (a lot of definitions: this chapter is an introduction to the theory of the firm, which studies the different types of behavior for firms in the markets in which they operate, and the nature of competition in different markets, the fundamental concepts of firm theory are costs, revenues and profits, in firm theory, all factors of production are assumed to be homogeneous (which is an unrealistic assumption, cost theory, some definitions: If a firm plans ahead to change its number of fops, all fops are assumed variable as plans are being made the firm plans in the long run: as soon as the fixed factors are changed, the firm is back in the short run, though with a different number of fixed fops; the only way to increase output would once again be through applying more units of variable fops to the fixed fops, definitions and equations related to cost theory:
