LectureⅦ The Cost of Production.pptVIP

LectureⅦ The Cost of Production Topics to be Discussed Measuring Cost: Which Costs Matter? Cost in the Short Run and Long Run Long-Run Versus Short-Run Cost Curves Production with Two Outputs: Economies of Scope Dynamic Changes in Costs: The Learning Curve Estimating and Predicting Cost 7.1 Measuring Cost: Which Costs Matters? Economic Cost versus Accounting Cost Accounting Cost: Retrospective view of the firm’s finances and operations. Economic Cost: the allocation of scarce resource, cost in the future. Opportunity Cost: The cost associated with opportunities that are forgone by