1. Decisions Facing FirmsDECISIONSare based onINFORMATION1. The quantity of output to1. The price of output supply2. How to produce that2. Techniques of output (which technique…

Introduction  Cost is the basis of many important decisions  Cost & revenue are the 2 main factors  Relation between cost & output is called cost function…

1. Short-Run Costs and Output Decisions 2. Decisions Facing Firms 3. 2. 1. 3. 2. 1. *Determines production costs The price of inputs* Techniques of production available*…

1. Short-Run Costs and Output Decisions 2. Decisions Facing Firms 3. 2. 1. 3. 2. 1. *Determines production costs The price of inputs* Techniques of production available*…

Slide 1© 2002 Prentice Hall Business PublishingPrinciples of Economics, 6/eKarl Case, Ray Fair 7 Prepared by: Fernando Quijano and Yvonn Quijano Short-Run Costs and Output…

Slide 1Copyright 2008 The McGraw-Hill Companies 21-1 Four Market Models Pure Competition Profit Maximization in the Short-Run Marginal Cost and Short-Run Supply Changes in…

Slide 112 Perfect Competition Slide 2 Learning Objectives What is perfect competition? How does a firm make output decision in the competitive market? Price and output determination…

Slide 111 Output and Costs Slide 2 Learning Objectives  Short run and the long run  The relationship between a firm’s output and labour employed in the short run…

1.The Meaning of the Cost • A firm’s cost of production includes all the opportunity costs of making its output of goods and services • Economic Cost or Opportunity…

1. © 2002 Prentice Hall Business Publishing© 2002 Prentice Hall Business Publishing Principles of Economics, 6/ePrinciples of Economics, 6/e Karl Case, Ray FairKarl Case,…