3 Tutorials that teach Decision Making Relationships: Rational Firm
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Decision Making Relationships: Rational Firm

Decision Making Relationships: Rational Firm

Author: Catherine Barry

This lesson will explain the economic idea of the rational firm.

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Notes on "Decision Making Relationships: Rational Firm"

Terms to Know

Cost Minimization

Output strategy that incurs the least amount of cost.

Opportunity Costs

The sacrifice made by choosing one value or opportunity over another.

Profit Maximization

Procedure of determining quantity and cost that yields the greatest profit.

Finite Resource

A fixed amount of supply that is irreplaceable and non-recoverable.