 | The Costs of Production
In this chapter you will learn:
- Why economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs.
- How the law of diminishing returns relates to a firm's short-run production costs.
- The distinctions between fixed and variable costs and among total, average, and marginal costs.
- The link between a firm's size and its average costs in the long run.
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