TAILIEUCHUNG - 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. | Chapter 5 Firm Production, Cost, and Revenue Chapter Outline Production Costs Revenue Profit and Profit Maximization Basic Definitions Profit: The money that business makes: Revenue minus Cost Cost: the expense that must be incurred in order to produce goods for sale Revenue : the money that comes into the firm from the sale of their goods Economic vs. Accounting Cost Economic Cost: All costs, both those that must be paid as well as those incurred in the form of forgone opportunities, of a business Accounting Cost: Only those costs that must be explicitly paid by the owner of a business Production Production Function: a graph which shows how many resources we need to produce various amounts of output Cost Function: a graph which shows how much various amounts of production cost Inputs to Production Fixed Inputs: resources that you cannot change Variable Inputs : resources that can be easily changed Concepts in Production Division of Labor: workers divide up the tasks in such a way .

• Quản lý Nhà nước
• Issues in economics today
• Lecture Issues in economics today
• Macroeconomic issues
• International issues
• Price control issues
• Firm production
• Economics of crime
• Economics of children
• Opportunity cost
• Prescription drugs
• Demand model
• Elasticity of demand
• Perfect competition
• Gross domestic product
• Federal spending
• Fiscal policy
• Monetary policy
• Flaws in the CPI
• International trade
• International monetary fund
• Trade agreements
• Economic model
• Environmental problems
• Economic models of health care
• Medicaid costs
• Public insurance
• Human capital
• Measuring poverty
• Social security
• Head start