(a) Distinguish between economic cost and accounting cost. Illustrate with examples.
(b) Clearly state and carefully explain the condition for cost minimizing use of labor and capital in a production process where labor and capital are variable inputs.
(c) Graphically illustrate and explain why the stated condition in (b) is true.
(d) Show that the cost minimization condition in (b) is the same as that of profit maximization in the short-run.