1. • Explicit Costs – Accounting Costs • Economic Costs – Implicit Costs – Alternative or Opportunity Costs • Relevant Costs – Incremental Costs – Sunk Costs…

Review of the previous lecture The goal of firms is to maximize profit, which equals total revenue minus total cost. When analyzing a firmâs behavior, it is important to…

Slide 1 CHAPTER 3 DEMAND AND SUPPLY ANALYSIS: THE FIRM Presenter’s name Presenter’s title dd Month yyyy Slide 2 1. INTRODUCTION Demand for goods by individuals Theory…

Slide 1 By: Christopher Mazzei Costs to Consider Viewpoints The owner of a company wants to keep costs down. An employee of the company wants a high wage or salary. There…

Review of the previous lecture The goal of firms is to maximize profit, which equals total revenue minus total cost. When analyzing a firmâs behavior, it is important to…

Warm-Up, 10/24 Warm-Up, 10/24 Marginal cost always intersects average variable cost at The profit-maximizing quantity The minimum of marginal cost The maximum of average…

Slide 1 By: Christopher Mazzei Costs to Consider Viewpoints The owner of a company wants to keep costs down. An employee of the company wants a high wage or salary. There…

Principles of Economics Session 5 Topics To Be Covered Categories of Costs Costs in the Short Run Costs in the Long Run Economies of Scope The Firmâs Objective The economic…