other things, shipping them directly to the consumer. Until recently there were no brick and mortar Amazon stores.

(Credit: modification of “Amazon Prime Delivery Van (50072389511)” by Tony Webster/Wikimedia Commons, CC BY

2.0)

CHAPTER OBJECTIVES

In this chapter, you will learn about:

• Explicit and Implicit Costs, and Accounting and Economic Profit

• Production in the Short Run

• Costs in the Short Run

• Production in the Long Run

• Costs in the Long Run

Introduction to Production, Costs, and Industry Structure

BRING IT HOME

Amazon
In less than two decades, Amazon.com has transformed the way consumers sell, buy, and even read. Prior to

Amazon, independent bookstores with limited inventories in small retail locations primarily sold books. There were

exceptions, of course. Borders and Barnes & Noble offered larger stores in urban areas. In the last decade, however,

independent bookstores have mostly disappeared, Borders has gone out of business, and Barnes & Noble is
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