Chp.13

Chapter 13 is about the production aspect and brings up the terms total revenue which is the amount a firm receives for the sale of its output. Also, total cost which is the market value of the inputs a firm uses in production, profit is total revenue minus total cost, production costs is input costs that require an outlay of money by the firm, implicit costs is input costs that do not require an outlay of money by the firm, economic profit is total revenue minus total cost, including both explicit and implicit costs. Accounting profit is total revenue minus total explicit cost and production function is the relationship between quantity of inputs used to make a good and the quantity of output of that good.