A1+Definitions

A1+Definitions - Frank Chapter 9 (Blue Book) 1. Firm:...

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Frank Chapter 9 (Blue Book) 1. Firm: that takes input, provides output, maximizing profits. 2. : Period of time where one or more factors’ quantities are fixed and one or more factors’ quantities are variable. 3. Opportunity Cost: value of a resource in its . 4. Economic Cost: plus explicit cost. 5. Cost Equation: Total cost expressed as a function of .
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Firm: Technical unit that takes inputs provides output, maximizing profits. Institution organizing production activity to economize on transaction costs among resource suppliers. Output: Any product or service whose fabrication or creation requires two or more scarce resources. Without scarce resources, there is no need to transact with outside sources. Anyone can achieve it by himself or herself and a firm is not needed. Therefore, output, the product of a firm, is not needed. Resource (Factor of production) (Input) Any scarce resource used in the production of a product or service. Good: Any combination of products and services that satisfies a human want.
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A1+Definitions - Frank Chapter 9 (Blue Book) 1. Firm:...

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