微观经济学Chapter06.pptVIP

Part 3 Revisiting Supply and Demand Chapter 6: Profit Maximization and Supply Chapter 7: Consumption Choice and Demand Chapter 6 Profit Maximization and Supply Cost of Production: Which kinds of cost would be included in production; the shape of cost shape. Profit Maximization: what is profit? Marginal principle leads to profit maximizing behavior How to choose output and how to set price for a firm to maximize its profit? Fixed Costs and Variable Costs Total Cost (TC) Total economic cost of production, consisting of fixed and variable cost. Fixed Cost (FC) Cost that does not vary wit