Short Essay 4 - Short Essay 1 The Firm Production and Costs...

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Short Essay 1 The Firm: Production and Costs Short Essay #3 Janette McGill California Baptist University BUS 217 Prof. Yoo Fall 2017
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Short Essay 2 If hypothetically, I was the owner of a start-up business, and my total revenue was increasing as more inputs were being utilized such as materials, labor, machines, etc., I do not believe that I would be maximizing the total profits in this case. With the increase in inputs, there would be an increase in outputs of production. However, there will be a point where it will start to have an effect on the outputs. There must be a logical relationship between the quantity of inputs and the quantity of outputs which is also called the production function [Sex17]. With the number of inputs increasing the total number of outputs will decrease. This will then cause a loss of total revenue, which means that the profit is no longer being maximized. One might assume that the more inputs you have means, the more output of production that will occur, causing higher total revenues in theory.
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