Lesson Plan
Long-Run Production and Costs
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I. Long-Run Production and Costs
- - definition of the long-run
- - costs in the long-run
- - what happens when use of another resource increases to
the production curves?
- - marginal and average productivity for other resources
- - least cost production in the long-run
- - the principle of equal marginal productivity per dollar spent
- - what should a firm do if a resource's MP decreases? If
its unit price increases?
- - long-run average cost (LRAC)
- - definition
- - economies of scale
- - diseconomies of scale
- - constant returns to scale
- - minimum efficient scale