Students will be able to identify the difference between long run and short run costs of production for a firm.
Students will be able to calculate marginal cost, fixed cost, variable cost, average variable cost, average total cost of a firm.
1. What is the difference between fixed and variable costs?
2. How do I calculate AVC, AFC, ATC and marginal cost?
3. How do the short run production curves compare to the long run production curves of a firm?
4. What is the concept of diminishing marginal returns?