ECO MICROECONOMICS HOMEWORK. CASE, SLP, And Thread Discussion

Costs of Production

Production and Costs in the Short Run

In microeconomics, we assume that all firms operate to maximize profit. Profit is calculated by subtracting total costs from total revenue. In the short-run, a firm has fixed and variable costs. We assume that labor is variable (workers can be hired and fired at any time) while capital is fixed (usually capital such as factory equipment, rent on a wherehouse is on a timed lease).

Required Materials

Economic Concepts: Production and Cost

http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12107

Podcast

Economic Concepts: Production and Cost

http://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12353

Interactive Tutorial