Behind the Supply Curve: Input and costs

4 important questions on Behind the Supply Curve: Input and costs

Why is the production ofject subject to dimishing returns to inputs?

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What types of costs does a firm face and how does the firm generate its marginal and average cost curves?

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What is a firm, and what is its purpose? How does it do it?

  • A firm is an organization that produces goods and services for sale.
  • By transforming inputs into outputs.
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A firms production function _______ its cost curve. (overlies/underlies)

Underlies

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