Theory of a Firm

Chapter 7 Production, Firms, and the Market

Theory of the Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory of the Firm ,[object Object],[object Object],[object Object],[object Object]

Theory of the Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory of the Firm ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Rocky’s Mountain Bikes’ ,[object Object],[object Object],[object Object],[object Object]

Theory of the Firm ,[object Object],[object Object],[object Object]

Theory of the Firm ,[object Object],[object Object]

Short Run vs. Long Run ,[object Object],[object Object],[object Object]

Example ,[object Object],[object Object],[object Object],[object Object],[object Object]

Marginal Revenue Marginal Cost ,[object Object],[object Object],[object Object]

Marginal Cost Marginal Revenue $35 $185 $100 $200 2 $30 $150 $100 $100 1 - $120 - $0 0 Marginal Cost Total Cost Marginal Rev Total Rev Units Sold

Marginal Revenue Marginal Cost ,[object Object],[object Object]

Controlling the Costs of Production ,[object Object],[object Object],[object Object]

Choosing Production Methods ,[object Object],[object Object],[object Object]

Theory of a Firm

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Theory of a Firm