Business Behavior and Market Structures · Microeconomics

The Theory of the Firm

Analysis of production costs, revenue streams, and the primary objective of profit maximization versus alternative goals.

Key Questions

  1. 1What incentives drive a firm to prioritize market share over short term profit?
  2. 2How do diminishing marginal returns dictate the scale of production?
  3. 3Who benefits when a firm pursues social responsibility instead of profit?

National Curriculum Attainment Targets

A-Level: Economics - Business Behaviour and the Labour MarketA-Level: Economics - Theory of the Firm
Year: Year 13
Subject: Economics
Unit: Business Behavior and Market Structures
Period: Microeconomics

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