Topic 3: Firm Behavior
Videos
Optimal Labor Demand Decisions
- Next, we consider the intuition for a firm's decision regarding how many workers to hire (i.e., their "optimal labor demand") when the firm's objective, or goal, is to maximize profit.
Production Possibilities Frontier
- The production possibilities frontier (PPF) illustrates how much stuff the firms in an economy could feasibly produce, given the available resources and technology.