Economics of the Firm

Economics of the firm deals with how a company/firm acts and how the market functions. Many issues come into clearer view when one understands the underlying microeconomics action and relationships. The majority of economic decisions are made by individuals acting in the capacity of consumers of goods and services suppliers of labor or other resources savers of money or managers of organizations. Economics of the firm is relevant to and helps us to explain the everyday economic events and predict economic behavior.