WhatisEconomics1Chapter10outputandcosts1What.docVIP

Chapter 10 output and costs  Chapter Key Ideas The ATM is Everywhere! A. Why are banks replacing teller windows with ATMs? B. Why do auto-makers have unused production capacity while electric utilities can’t always produce enough to meet demand? C. This chapter studies a firm’s production possibilities and the costs of production. Outline I. Decision Time Frames A. The firm makes many decisions in order to achieve its main objective: profit maximization. 1. Some decisions are relatively critical to the survival of the firm, or are irreversible (or very costly to reverse). 2. Other decisi