Basic Concepts of Microeconomics: With Special Reference to Kenya

additional unit assets average fixed costs average total costs average variable costs budget line capital coffee combination concept constant consumer costs of production Costs Shs decline decreases demand curve diminishing marginal economic economies of scale effect elasticity equilibrium example factors of production farmer firm's given amount incentive income increase indifference curve individual firm industry inelastic interest rate isocost isoquant Kenya land level of output long-run maize marginal physical product marginal product marginal revenue marginal utility market system monopolistic competition Note opportunity cost Output Q P₁ P₂ perfect competition price and market production function profit maximization purchase Q Figure relationship returns to scale rise short-run shown in Figure slope SRAC substitution supply curve tangent total cost curves total physical product total revenue curve total variable cost unit of chicken unit of input units of beef variable cost curve variable input