If you are a beginner and have just started to study production theories of microeconomics, so then you are on the right place to start from. After studying this article, you will learn the concepts of production, production function, and the concepts of total, average
Microeconomics
Ricardian Theory of Rent
What is Economic Rent?
How does a Multi-product Firm Maximize its Profit?
Profit Maximization Theory of Single-Product Firm
In economic literature, we consider profit maximization is the main goal of any business firm or a rational producer. When we talk about the profit maximization objective, we are implicitly referring to the economic efficiency rather than technical efficiency. Technical efficiency does not consider the