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Perfectly competitive market - Coggle Diagram
Perfectly competitive market
Factors of production
Capital
Enterprise
Labour
Time period
Land
Fixed and variable factors of production
Short run
Some imputs are fixed, some are variable
Law of diminishing returns
Long term
All imputs are variable
Cost of production
Explicit cost
Involve an actual pay out
Implicit cost
Already owned by firms
Shape AC, depends on shape MC
Marginal above average, average will rise
Marginal below average, average will fall
Marginal equals average, average won't change