ECO100Y5 Chapter Notes - Chapter 7: Risk-Free Interest Rate, Opportunity Cost, Fixed Cost
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ECO100Y5 Full Course Notes
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Chapter 7 reading notes firms can be organized in 6 diff ways: single proprietor, ordinary partnership, limited partnership, corporation, state-owned enterprise (owned by the government. Also called crowned corporations), and non-profit organizations. goals of firms are to maximize profits. It motivates all decisions made within a firm, and such decisions are assumed to be unaffected by the peculiarities of the persons making the decisions and by the organizational structure in which they work. Production intermediate products: all outputs that are used as inputs by other producers in a further stage of production. This is what makes up the first group of inputs. Q=f(l,k: q is the flow of output, k is the flow of capital and l is the flow of labour services. Costs and profits profits is taking revenues they obtain from selling their output and subtracting all costs associated with their inputs.
