COSTS OF
PRODUCTION
, BUSINESS QUESTIONS
• What do costs of production consist of?
• How are costs of production measured?
• What is the relationship between inputs and outputs in the
short run and in the long run?
• What are meant by economies of scale?
• Why do economies of scale exist?
• How can a business combine its inputs in the most efficient
way?
, LECTURE TOPICS
• The meaning of costs
• Production in the short run
• Costs in the short run
• Production in the long run
• Costs in the long run
PRODUCTION
, BUSINESS QUESTIONS
• What do costs of production consist of?
• How are costs of production measured?
• What is the relationship between inputs and outputs in the
short run and in the long run?
• What are meant by economies of scale?
• Why do economies of scale exist?
• How can a business combine its inputs in the most efficient
way?
, LECTURE TOPICS
• The meaning of costs
• Production in the short run
• Costs in the short run
• Production in the long run
• Costs in the long run
