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#cfa-level #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
The theory of the firm deals with the supply of goods and services by profit-maximizing firms.
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1. INTRODUCTION
y. The theory of the consumer deals with consumption (the demand for goods and services) by utility-maximizing individuals (i.e., individuals who make decisions that maximize the satisfaction received from present and future consumption). <span>The theory of the firm deals with the supply of goods and services by profit-maximizing firms. The theory of the consumer and the theory of the firm are important because they help us understand the foundations of demand and supply. Subsequent readings will focus on the theory of


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