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Theory of the Firm in Perfect Competition Two Critical Decisions; Long Run vs Short Run; Widget Production
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I. ECONOMIC COSTS Economic Costs are Opportunity Costs Explicit Costs –Resource payments like rent, labor, trucks, vendors, fuel Implicit Costs –self-owned
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Managerial Economics Ace Institute of Management Executive MBA Program Remainings from Objectives of the Firm Instructor Sandeep Basnyat
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Competition Chapter 8. Recall: Producer Decision-making Optimal behavior: choose the right input combination or right production level Goal: –Max production
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Chapter 6 Cost analysis and Measurement. KEY CONCEPTS historical cost current cost replacement cost opportunity cost explicit cost implicit cost incremental
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1 Chapter 8 Costs of Production Costs of Production Principles of Economics by Fred M Gottheil PowerPoint Slides prepared by Ken Long © ©1999 South-Western
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