Chapter 13

Chapter 13 seems to make sense once you read it, but I am worried about the new vocabulary added as well as the graphs introduced. The graphs more than the vocabulary. The chapter focuses on the costs in an economy and market. When a person starts a business, their costs aren’t just the money they put into it, we have to account for their opportunity costs (implicit costs, and usually an economic value). An economists will anyways, not so much an account. They only look at explicit costs vs the total revenue, the whole money made minus the money they spent would give them clear profits.

The graphs worry me because it isn’t straight lines anymore; the graphs curve depends on the circumstances, so drawing them is going to be more difficult, and even the graphs with overlapping curves causes a slight panic. The short run and long run graph is the most confusing one, but with given time I think it’ll start to click.

The costs are also divided into categories: implicit, explicit, fixed, variable, marginal. The groups may overlap, but still their distinctions are pretty apparent and even by looking at the word choice, it doesn’t seem too bad to memorize/learn.