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Economics · 40 cards

Production, Costs, and Industry Structure (Economics)

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Recall cards on how firms produce and what it costs. Explicit versus implicit costs, and accounting profit versus economic profit. The short-run production function: fixed and variable inputs, marginal product, and the law of diminishing marginal product. Short-run costs: fixed, variable, total, and marginal cost, the average cost measures, and the shapes of the U-shaped average total cost curve and the marginal cost curve that cuts it at its minimum. Then the long run, where all inputs vary: the long-run average cost curve built from short-run curves, and how economies of scale, constant returns, and diseconomies of scale, read against market demand, shape an industry's structure.

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