清华大学中级微观经济学的讲义.pptVIP

Profit-Maximization What Do We Do in this Chapter? After working our “producer’s budget sets” (production sets), We are working on “producer’s choices” Please pay attention to the similarity and differences between “producer’s choices” and “consumer’s choices” Economic Profit The economic profit generated by (x1,…,xm,y1,…,yn) is Notes: For the time being, we restrict to the case of a competitive firm, which is a tiny relative to the market size and takes prices p1,…,pn w1,…,wm as given constants; Short-run Economic Profit Suppose the firm is in a short-run circumstance in which Its short