The document discusses theories of the firm, including the goal of profit maximization. It defines accounting profit as total revenue minus total costs, and economic profit as total revenue minus total costs including opportunity costs. It also discusses the differences between fixed and variable costs, and how firms determine optimal production levels by equating marginal revenue and marginal cost. Productivity and efficiency are important for controlling production costs.

1. The U.S. Economic Meltdown

2. Chapter 7 Production, Firms, and the Market

18. Marginal Cost Marginal Revenue $35 $185 $100 $200 2 $30 $150 $100 $100 1 - $120 - $0 0 Marginal Cost Total Cost Marginal Rev Total Rev Units Sold