By the end of this chapter, you should understand:
- a production function
- technology and a technique of production
- how the choice of technique depends on input prices
- total, average and marginal cost, in the long run and short run
- returns to scale, and their relation to average cost curves
- fixed and variable factors in the short run
- the law of diminishing returns
- how a firm chooses output, in the long run and short run.
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