Professional Documents
Culture Documents
Unit 4 - Firm
Unit 4 - Firm
Name: __________________
Unit 4 Outline
Theory of the Firm
Introduction
This unit introduces students
to the theory of the firm.
Students examine
production and cost curves,
economies of scale and types
of industries. Special
attention is given to a firm’s
profit maximizing condition
and market equilibrium in
the short and long run.
Big Questions
The main overarching question of this course is: How do individuals and societies make sense of
and assess economic information to make decisions?
By the end of this unit on the theory of the firm, you will be able to answer the following
question:
Name: __________________
Key Vocabulary
Content
The Profit Maximizers (Accounting vs.
Economic Profit, MC = MR)
Firm Product and Cost Curves
The Factor Markets (Labour)
Economies of Scale
Analyzing Economic Issues (CIA4U)
Name: __________________
Pre-Learning Assessment
Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)
Name: __________________
2) How are firm’s production and hiring decisions affected by the factor markets?
Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)
Name: __________________
Name: __________________
Name: __________________