Explanation of how a firm makes cost minimizing production decisions and how its cost varies with...

Explanation of how a firm makes cost minimizing production decisions and how its cost varies with output is known as

Iso-cost

iso-quant

theory of the firm

production function

Which one of the above is the answer?

Solutions

Expert Solution

Option C.

The theory of the firm explains how various firm's exist in market and how they behave in different marketing conditions.
It deals with how a firm makes cost minimization and profit maximization decisions.
It also shows how firms decide on optimising their costs which varies with each additional unit of an output produced.

Rahul Sunny answered 2 years ago

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