Economics of Production - Introduction
Welcome to the next lesson of this module where we will cover the topic of economics of production.
This chapter firstly defines production economics, along with discussing the microeconomics of production, seeking to determine how businesses look to maximise profits, both in the short-term, and the long-term. Following on from this, the chapter explains the Production Possibilities Frontier. Ryanair is used as a case study example throughout the chapter, to provide a well-rounded understanding to the student.
Understanding this topic can give a firm a new perspective on their overall management and planning, meanwhile observers can gain an understanding of firm motivations and growth patterns.
Goals for this section:
- To learn the foundations of production economics
- To understand marginal and average costs
- To gain an understanding of elasticity of demand