Introduction a Our focus is the supply side a The theory of the firm will address o How a firm makes cost-minimizing production decisions o How cost varies with output o Characteristics of market supply o Issues of business requlation Chapter 6 Slide 3Chapter 6 Slide 3 Introduction ◼ Our focus is the supply side. ◼ The theory of the firm will address: ⚫ How a firm makes cost-minimizing production decisions ⚫ How cost varies with output ⚫ Characteristics of market supply ⚫ Issues of business regulation