posted by D on .
Hi guys I need a hand please!! Whatever you can share would be helpful!! Thank you so much!
Here is the question below:
‘Consumers maximize utility subject to a budget constraint. Firms maximize output subject to a cost constraint’.
Outline how the analysis of the firm’s behaviour in terms of isoquant and isocost analysis parallels the analysis of consumer behaviour in terms of indifference curve and budget constraint analysis.
To what extent does this type of analysis indicate the meaning of the basic economic problem?