Lecture
This lecture covers the necessary conditions for profit maximization in microeconomics, focusing on the equality condition between marginal products of factors divided by their prices. It explains how these conditions are obtained during output maximization under cost constraints or cost minimization under output constraints, ensuring productive efficiency. The lecture also discusses the effect of resource variation on the optimal choice, the concept of the expansion path, and the evolution of the optimal combination of production factors following changes in resource constraints. Additionally, it delves into long-run cost functions, scale economies, and state interventions on markets.