Constraints on operation of firm
Limitation of theory of firm
Nature and function of profit
Theories of profit- Risk bearing, frictional theory, monopoly theory, innovation theory,
managerial efficiency theory.
Quantity, Price, P
Total Revenue, TR
If price falls from $200 to $150, what is the elasticity of demand over this range?
1. If Redstone wanted to minimize average total cost, it would produce how many
Redstone will produce 300 units at the lowest average total cost of $90 per unit.
2. If Redstone wishes to maximize profit MARGIN, it should produce how many units.