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Output increases total cost - PowerPoint PPT Presentation

Unit III: Costs of Production and Perfect Competition

Unit III: Costs of Production and Perfect Competition. Accountants vs. Economists. Accountants look at only EXPLICIT COSTS Explicit costs (out of pocket costs) are payments paid by firms for using the resources of others. Example: Rent, Wages, Materials, Electricity Bills.

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Output increases total cost - PowerPoint PPT Presentation

Unit III: Costs of Production and Perfect Competition