Running head: SUMMARY OF CLASS READINGS
Summary of Class Readings
SUMMARY OF CLASS READINGS
Summary of the Class Readings
The class readings covered various major microeconomic concepts. As such, we began
the class readings by studying the theory of the firm, which states that a firm exists and engages
in activities that maximize profits. In this case, in my understanding, any business that exists or
is founded its objective is to maximize profit by ensuring that it minimizes the cost of
production. Then we studied the concept of supply and demand, as well as, the relationship
between cost and productivity. Notably, productivity is an indicator that is used to indicate the
level of efficiency in goods production; whereas, the cost helps in indicating the expense of
producing one unit of outpu...
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