Unit 2.11(1): Market power - Theory of production and costs (HL)
This page covers the theory of product, the law of diminishing returns, the different ways of classifying costs, the link between the law of diminishing returns and costs, and how marginal cost affects the law of supply. The theory of costs underpins the theory of supply covered in Unit 2.2. There are two primary ways to examine costs: implicit costs and explicit costs. An implicit cost is the opportunity cost that...