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  2. Theory of the firm - Wikipedia

    en.wikipedia.org/wiki/Theory_of_the_firm

    The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market. [1] Firms are key drivers in economics, providing goods and services in return for monetary payments and rewards.

  3. The Nature of the Firm - Wikipedia

    en.wikipedia.org/wiki/The_Nature_of_the_Firm

    This explains why firms tend to either be in different geographic locations or to perform different functions. Additionally, technology changes that mitigate the cost of organizing transactions across space will cause firms to be larger—the advent of the telephone and cheap air travel, for example, would be expected to increase the size of firms.

  4. Profit maximization - Wikipedia

    en.wikipedia.org/wiki/Profit_maximization

    The firm merely treats short term fixed costs as sunk costs and continues to operate as before. [7] This can be confirmed graphically. Using the diagram illustrating the total cost–total revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal. [4]

  5. Monopolistic competition - Wikipedia

    en.wikipedia.org/wiki/Monopolistic_competition

    A firm making profits in the short run will nonetheless only break even in the long run because demand will decrease and average total cost will increase, meaning that in the long run, a monopolistically competitive company will make zero economic profit. This illustrates the amount of influence the company has over the market; because of brand ...

  6. Bertrand competition - Wikipedia

    en.wikipedia.org/wiki/Bertrand_competition

    From the situation, firms with the lower marginal cost can choose whatever they want within the range between their marginal cost and other firms’ marginal costs. There is no absolute answer to which price they should set, it is just based on different factors, for example, the current market situation.

  7. Here's Why the British Royal Family Is Called "The Firm" - AOL

    www.aol.com/heres-why-british-royal-family...

    Use of "The Firm" can also take the onus off individual members of the royal family when critiquing the organization. As the Duchess of Sussex put it while talking to Oprah, "There’s the family ...

  8. Shutdown (economics) - Wikipedia

    en.wikipedia.org/wiki/Shutdown_(economics)

    The goal of a firm is to maximize profits or minimize losses. The firm can achieve this goal by following two rules. First, the firm should operate, if at all, at the level of output where marginal revenue equals marginal cost. Second, the firm should shut down rather than operate if it can reduce losses by doing so. [1] [2]

  9. Perfect competition - Wikipedia

    en.wikipedia.org/wiki/Perfect_competition

    A firm that has shut down is not producing. The firm still retains its capital assets; however, the firm cannot leave the industry or avoid its fixed costs in the short run. Exit is a long-term decision. A firm that has exited an industry has avoided all commitments and freed all capital for use in more profitable enterprises. [34]