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9.16: Introduction to Costs in the Short Run

  • Page ID
    48396
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    What you’ll learn to do: calculate, graph and understand production costs in the short run

    Rolls of fabric on a storage cart in a factory.

    It’s obvious that a firm’s total revenue must exceed total costs if it wants to make a profit. In this section, you’ll see why it’s helpful for firms to break down and examine their costs in different ways.  We will look at fixed versus variable costs, average versus marginal costs, and more. The purpose of these different concepts is to give the firm a better picture of how they can become more profitable.

    Contributors and Attributions

    CC licensed content, Original
    • Introduction to Costs in the Short Run. Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution
    CC licensed content, Shared previously

    9.16: Introduction to Costs in the Short Run is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

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