Page 571 - Krugmans Economics for AP Text Book_Neat

section 10

Module 52: Defining Profit
Behind the
Module 53: Profit Maximization
Module 54: The Production Function
Module 55: Firm Costs
Module 56: Long-Run Costs and Economies
of Scale Supply Curve:
Module 57: Introduction to Market Structure
Economics by Example:
“Could the Future Cost of Energy Change Life as Profit, Production,
We Know It?”

and Costs

In Section 9 we examined the factors that affect con- production function, which shows the relationship be-
sumer choice—the demand side of the supply and de- tween the inputs used for production and the output
mand model. In this section we turn our attention to the that is produced. Next we’ll consider the costs that in-
factors that affect producer choice and the supply side fluence firms’ decisions about supply. The final module
of the supply and demand model. We’ll begin with the in this section introduces the models of market struc-
concept of profit and examine profit maximization as ture used to understand how the supply side of the
the goal of a firm. We will then investigate the firm’s economy works.

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