IB Diploma Economics:
Theory of the firm I: Production, Costs, Revenues and Profit HL

The first Theory of the Firm topic in IB Economics concerns itself with the behaviour of firms and examines production and the law of diminishing returns and the economic costs of production. We examine how costs and revenues relate to the profitability of firms. The various goals a firm may have are studied.

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Theory of the firm I: Production, Costs, Revenues and Profit  – Topics:

• Law of diminishing returns
• Economic costs
• Short-run costs
• Long-run costs
• Revenues
  
• Profits
  
• Goals of firms
  

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