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Lecture Economics (19/e) - Chapter 7: Businesses and the costs of production

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Lecture Economics (19/e) - Chapter 7: Businesses and the costs of production

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After reading chapter 7, you should be able to: Explain why economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs; relate the law of diminishing returns to a firm’s short-run production costs; describe the distinctions between fixed and variable costs and among total, average, and marginal costs; use economies of scale to link a firm’s size and its average costs in the long run.

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