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A function whose value is the produced quantity associated with a given vector of factor inputs. The production function represents the technology available to the firm.

4 votes
1 answer
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Why does marginal cost (derivative of total cost) differ from variable cost at each level?

Why does the marginal cost equation (as the derivative of total cost equation) make predictions of variable costs that are very different from costs calculated using the Total Cost equation? Marginal …
Bryan Gentry's user avatar