Market Structure

What is Market Structure?  Market structure concerns how competitive is the industry. That is, it concerns the following factors: Market power of each firm (suppliers and buyers); Substitute products; Barriers to entry; Competitive rivalry It also concerns the number...

Cost Function

What is the Cost Function? A cost function is a mathematical expression or equation that shows the cost of producing different levels of output. What we observe is that the cost increases as the firm produces higher quantities of output. This is pretty intuitive,...