Economics (McConnell), AP* Edition, 20th EditionChapter 9:
Businesses and the Costs of Production After studying this chapter, you should be able to: LO 9.1 | Explain why economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs. | LO 9.2 | Relate the law of diminishing returns to a firm's short-run production costs. | LO 9.3 | Describe the distinctions between fixed and variable costs and among total, average, and marginal costs. | LO 9.4 | Use economies of scale to link a firm's size and its average costs in the long run. | LO 9.5 | Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES). |
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