Economics For Managers

Chapter 5 : Analysis Of Costs

Types Of Costs

Opportunity Costs
Implicit and Explicit Costs
Economic Costs
Marginal
Incremental and Sunk Costs
Direct and Indirect Costs
Fixed and Variable Costs

Cost And Production Functions

Short Run Cost Functions
Long Run Cost Functions
Comparison between Long Run and Short Run

Break Even Analysis

Merits of Break-even Analysis
Demerits of Break-even Analysis

Shutdown Point

Economies Of Scale

Real Economies of Scale
Pecuniary Economies of Scale Diseconomies of Scale
Economies of Scope

Chapter Summary

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