

Production with one input
PRODUCTION WITH ONE INPUT We define as input or factors of production any resource a firm uses to produce its goods or provide its...


Consumer and producer surplus
CONSUMER SURPLUS The maximum price that a customer is willing to pay for a good determines the buyer’s willingness to pay. There are...


Price ceilings and price floors: the effects of the government in a market.
HOW GOVERNMENT CAN AFFECT MARKETS In a free competitive market, as we have seen in the lecture about equilibrium, the price of a...