9: Production
- Page ID
- 3490
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- 9.1: The Production Function
- The production function relates the maximum amount of output that can be obtained from a given number of inputs.
- 9.2: Production Cost
- Variable costs change according to the quantity of goods produced; fixed costs are independent of the quantity of goods being produced.
- 9.3: Economic Profit
- Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs; accounting profit consists of revenue minus explicit costs.