In producer theory, how are costs of production derived? What are the three assumptions of producer theory? How are they related to scarcity? What role does the consumer play?

In a market economy, what do firms do? What are residual claimants? Differentiate between the three types of firms discussed in class.

Differentiate between the explicit, implicit costs that firms face. What are total costs? What sunk costs?

Differentiate between economic profit, zero economic profit, and accounting profit.