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Theory of firms
- Definition of a firm: A business organisation, such as a corporation, limited liability company or
partnership. - A commercial organisation that operates on a for-profit basis and participates in selling
goods or services to consumers.
- Economies of scale
- Economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of
operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are
spread out over more units of output.
- http://www.investopedia.com/articles/03/012703.asp
- Economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of
operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are
spread out over more units of output.
- Short-run & Long-run
- Cost curves
- Profit
- Accountant's definition:
- Economist's definition:
- Accountant's definition:
- Returns to scale
- Production and productivity
- Main types of ownership
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