QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.Northwestern University ♦ECON 310-1: Microeconomic Theory ♦Profs. Hornsten and Braeutigam♦Winter 2012 CONGRATULATIONS! You’ve just been promoted! In chapters 7 and 8 the boss told you how much to produce. As production manager, you made production decisions, choosing inputs to minimize cost given a production target. Now YOU are the boss. You oversee competitive market operations. You are making higher level decisions. You -- choose the level of output that maximizes profit. (Today’s discussion) -- decide whether the firm should enter a market or a line of business. (Next time) --- decide whether the firm should exit a market or a line of business. (Next time) Choosing Outputs and Inputs in a Perfectly Competitive MarketNotes for Lecture #19 From Learning Objective 7: You will be able to apply the appropriate cost concepts to analyze the optimal production choices of a profit maximizing firm in a competitive market.
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