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Financial markets do not function as well as they could due to:
Cubic Cost Function
A representation of cost as a cubic function of output, allowing for more complex cost behavior including economies and diseconomies of scale.
Average Variable Cost Curve
A graphical representation showing how the average variable cost of production changes with the quantity of output produced.
Marginal Cost Curve
A curve that illustrates the change in total cost that arises when the quantity produced changes by one unit, typically upward sloping due to increasing marginal cost.
Average Cost Curve
A graphical representation showing the average cost of production at different levels of output.
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