Reading 15: The Firm Flashcards
Profit
The Firm
15.1
Accounting Profit
The Firm
15.2
Economic Profit
The Firm
15.3a
Economic Profit
(In terms of Economic Cost)
The Firm
15.3b
Economic cost is equal to the sum of total accounting costs and implicit opportunity costs.
Accounting Profit
(In terms of profit)
The Firm
15.4
Production Function
The Firm
15.5
General Production Function
The Firm
15.6
Where xi represents the quantity of the ith input subject to xi less than or equal to 0 for n number of different inputs.
Output per Monetary Unit of Input Cost
The Firm
15.7
Least-Cost Optimization Formula
(maximizing output per monetary unit of input cost)
The Firm
15.8
Least Cost Using a Two Factor Production Function
The Firm
15.9
Profit-Maximizing Utilization Level of an Input
(Using MP and product price)
The Firm
15.10
Profit-Maximizing MRP
(Marginal Revenue Product)
The Firm
15.12
When profit is maximized, MRP equals the input price for each type of resource used and all MRPinput/Pinput are equal to one.
