References

Professor R. Larry Reynolds, (April 2010) Basic Microeconomics

(http://www.boisestate.edu/econ/lreynol/web/Micro.htm

McConnell, (2002) Principles of Economics, McGraw-Hill Irwin,

McGraw-Hill/Irwin Copyright © 2011 Production and Cost Estimation McGraw-Hill

Companies, Inc.
Objectives

After our discussion, we should be able to:

1. Understand what is production and cost..

2. Define the difference between economic and accounting costs.

3. Distinguish between internal and external costs.

4. Understand an economic production function.

5. Describe the relationship between patterns of returns and patterns of

production costs.