Short-Run Output
shut-down rule - firms may continue to produce even when losing money
Economics
Forum reference:
Book page:
http://course-notes.org/Economics
Perfectly Competitive Markets
price taking - firms take market price as given
- individual firms sell sufficiently small part of total market output
- firms can't decide wha
Cost Function
cost function - relates cost to output level for future prediction
- VC = bQ
- linear functi
Economies of Scale/Scope, Learning Curve
economies/diseconomies of scale
- input proportions change >> expansion path no longer a straight line
- firm can double output for less t
Isocost Line
isocost - line showing all combos of labor and capital bought for a given cost
- rental rate - r, given to certain equipment to quantify capital
Short-Run, Long-Run Cost
short-run cost - remember that certain inputs are fixed in the short-run
Intro to Microeconomics
economics - social science studying behavior/interaction
Special Cases, Returns to Scale
perfect substitutes - linear isoquants 
- isoquants
- c
Two Variable Inputs
long run - allows for 2 (or more) variable inputs
- diminishing marginal returns shown by drawing horizontal or vertical line through isoquant map
One Variable Input
firm decisions - based of benefits on incremental or average basis
- total output - can actually decrease after too many workers are employed
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