Economics/mar2-cost-production.md

# March 2 - Cost of Production

## Fixed vs Variable Cost

- Fixed Costs always have to be payed
    - Yearly salary

- Variable cost changes
    - Hourly paycheck rate

- Total Cost -- fixed plus variable cost
- Cost minimization -- the combination of spending that costs the least
- Marginal cost -- cost of doing something again
    - marginal costs total minus output 

## Profit Maximizing

- Output that gives as much profit as possible
- Marginal revenue -- additional revenue of another unit of output
- When should a company go out of Business?