The goods purchased by consumers are produced by firms, another key set of economic players. This unit introduces you to the study of firm, or producer, behavior. You will learn how to analyze firms' decisions mathematically using a production function and calculate their optimal level of production, costs, and profits. In addition, you will begin to learn how firms interact in a competitive market in the short-run and the long-run.
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Introduction to Producer Theory This image is a work of the US Federal Government and in the public domain. Source: Library of Congress. |
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Image courtesy of AndreasPraefcke on Wikipedia. |
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This image is a work of the US Federal Government and in the public domain. Source: Wikipedia. |
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Image courtesy of johnthurm on Flickr. |
