The study of the profit-maximizing firm in a single time period is the essential starting point for the analysis of the economics of corporate decision making.
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Open it The study of the profit-maximizing firm in a single time period is the essential starting point for the analysis of the economics of corporate decision making. Furthermore, with the attention given to earnings by market participants, the insights gained by this study should be practically relevant. Among the questions this reading will address
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Prerequisite Demand and Supply Analysis: The firm f this reading is the cost side of the profit equation for companies competing in market economies under perfect competition. A subsequent reading will examine the different types of markets into which a firm may sell its output.
<span>The study of the profit-maximizing firm in a single time period is the essential starting point for the analysis of the economics of corporate decision making. Furthermore, with the attention given to earnings by market participants, the insights gained by this study should be practically relevant. Among the questions this reading will address are the following:
How should profit be defined from the perspective of suppliers of capital to the firm?
What is meant by factors of production?
How are total, average, and marginal costs distinguished, and how is each related to the firm’s profit?
What roles do marginal quantities (selling prices and costs) play in optimization?
This reading is organized as follows:
Section 2 discusses the types of profit measures, including what they have in common, how they differ, and their us
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