Class Activity 1
1. William Howe must decide whether to start a business renting beach umbrellas
at an ocean resort during June, July, and August of next summer. He believes he can rent
each umbrella to vacationers at $5 a day, and he intends to
Definition and Purpose of the Long Run
In the long run all resources are variable.
Plant capacity/size can change.
Why is this i
Understanding Incremental Cost
Incremental cost is the cost of adding or subtracting one
extra unit of product or output. For example, a restaurant is
only allowed to seat 100 people, per the fire department
regulations. The restaurant is doing well, and