Working with the firm's cost function enables us to learn how much of each input the firm should optimally use to produce a given level of output. However, the firm still has to decide how much output it should produce. This decision depends on the type of market the firm is operating in. We begin by analyzing the most common type of market: perfect competition.
Prof. Jonathan Gruber
14.01 Principles of Microeconomics
(Massachusetts Institute of Technology: MIT OpenCourseWare)
Date accessed: 2012-03-01
License: Creative Commons BY-NC-SA
To view the lecture material accompanying this lecture in a new window, please click the button below. If necessary, use the vertical or horizontal scrollbar in the new window to view more of the material or you can resize the window.
To download the above lecture material use this link. (Right-click and select Save Target As or Save Link As.)