Economics-For Managers

In this chapter we understood the importance of cost of production or providing a service for a firm.

The chapter started with discussing various types of costs and later relationship between the cost and production was studied.

The behavior and the difference of cost curves in long and short run were analyzed.

Later the importance of shut down point when the firm should close its operation to avoid losses was discussed.

The implications of break even analysis was also discussed. Economies and diseconomies of scale with the cost perspective were also discussed in the chapter.