The Firm: Maximizing Profit
In This Chapter
- What is a profit?
- The cost structure of a firm
- Maximizing profits
- When a firm should call it quits
- Short-run and long-run decisions of a firm
An entrepreneur who starts a company is enthusiastic about an idea and hopes to launch a profitable business. That’s a worthwhile plan because being creative, building something from nothing, and also being able to make a living doing what you love is the best of all worlds. Every successful business was started by someone with an idea.
This chapter describes what all businesses need to know: how much to produce in order to maximize profits. Each industry ...