Ch2

Businesses:

  1.  Will choose the cheapest way to produce
  2.  Profit= Total revenue – Total costs
  3.    Will only want to stay in a market producing if they are at least breaking even (meaning they are paying all of their costs)
  4.  If businesses in a market are paying all of their costs and then some, this will attract more people into that business.

Michael Munger Exchange Video
https://www.youtube.com/watch?v=W-qGYlRtCcM







Comments