Lecture Issues in economics today - Chapter 5: Firm production, cost, and revenue
Lecture Issues in economics today - Chapter 5: Firm production, cost, and revenue
In this chapter, you will learn to: Demonstrate the relationship between production and costs and the relationship between sales and revenues, explain that models of production are based on the assumption that firms seek to maximize profit, demonstrate how profit maximization dictates that firms set production so that marginal cost equals marginal revenue.