Utility Max

How firms make production decision

Model

consumer preference - Preference Consum

1. completeness
2. transitivity
3. non sa / more is always better than less budget constraint

indifferent curves

1. cons prefer higher IC
2. IC are downward Sloping
3. IC nerver cross
4. only IC through every bundle

Intuitive - Graphical - mathi

marginal decisional (边际递减效应) MRS = Del P VS DEl C

convex concave