Maximizing Profits and Minimizing Losses

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Consider a supplier of agricultural equipment who is deciding how much of two products should be produced by his firm. You determine what the two products are.

Now create a report that includes a discussion and analysis regarding how such a supplier makes such a determination in order to maximize the firm’s profits. Include in your response:

 

  • A discussion of exactly what costs are associated with profit maximization.
  • A discussion of the concept of “opportunity cost.”
  • A discussion of the alternative production opportunities.
  • A discussion of the various constraints which firms face in maximizing their economic profit.

In responding to this assignment, quotations, paraphrases, and ideas you get from books or other sources of information should be cited using APA style. Help with citing sources can be found through the Academic Resources page under Course Home.

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