Lecture Principles of Microeconomics - Chapter 8: Costs. After reading this chapter, you should be able to answer the following questions: What are different types of costs? What is diminishing marginal returns? Why do marginal costs increase? Why is the average total costs curve U-shaped? What is the relationship between the average total costs curve and marginal costs curve? What is the difference between short run and long run? What are economies and diseconomies of scale? |
