Chapter 8

Cost and Supply

In this chapter we define some concepts of cost for the business firm, and explore the way costs vary with changing output in the short and long run.

Begin the chapter

Overheads for This Chapter

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You Need to Know

To understand this chapter, you will need some concepts from

Contents

  1. Introduction
  2. Fixed and Variable Cost
  3. Opportunity Cost
  4. Average Cost
  5. Marginal Cost
  6. Maximization of Profits
  7. Marginal Cost and Supply
  8. Shutting Down and Bankruptcy
  9. The Long Run
  10. Long Run Average Cost
  11. Returns to Scale
  12. Chapter Summary

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