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the traditional theory explains cost curve u shape, but in modern theory says that cost curve L shape

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What is modern theory of cost?

Modern theory of cost is that the Economist belief that the average cost curve and marginal cost curve (AC & MC) are "L" shaped.


Differences between modern and traditional theory of cost?

The differences between modern and traditional theory of costs relate to international trade. Traditional theorists thought that there should be a separation from internal trade and internal relations while modern theorists felt the terms were the same.


What is the definition of classical theory of production?

The definition of the classical theory of production is defined by Adam Smith and involves 3 factors of production; land, labor, and capital. With the passage of time the size of the market will increase, which will lead to both internal and external economies of scale, which will eventually lower down the cost of production.


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What does the theory of production deal with?

The theory of production deals with the relationship between the factors of production and the output of goods and services


Why variable cost is that it ignore the increasing importance of fixed cost in modern manufacturing?

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What is the most modern theory of light?

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Production cost formula?

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Who is the father of modern theory?

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The Production Budget for Modern Problems was $8,000,000.