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Economics glossary · The economic problem

Producers

What producers means in economics, as one of each economic agent is assumed to maximise one thing, with an example and a question to test yourself.

Definition
Producers
Producers are the firms that turn factors of production into goods and services to sell, and each is assumed to maximise profit, total revenue minus total cost.
Example

Can you think of an example of producers?

Test yourself

Can you name the three economic agents and what each is assumed to maximise?

Learn it properly: the module

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