Firms Actions in Increasing Its Profitability and Producing High Qual Assignment

Firms Actions in Increasing Its Profitability and Producing High Quality Products - Assignment ExampleThe theory of a firm ensures that it regulates either the above-named factors in the company to ensure that they lead to the success of this firm. This principle focuses on using flashy and available inputs in the business processes since they reduce the cost incurred during production. They be also concerned with the methods that are use by the firm in the production process. For example, the products produced must be of very high quality since this principle is able to equalize on the inputs.This theory articulates that all the firms will realize a great get ahead if they produce goods up to the point where the marginal revenue is equal to the marginal cost, whereas, the firm consumes all its factors of production to the point where the cost of production is at par with the marginal revenue. The theory is known to be the high hat in identifying the future of the firm, ensurin g that it makes enough profit with time. The theory ensures that it studies the structure of the company and improves its relationship with the market for it to take after in the future. The theory is also useful in answering some other economic questions such(prenominal) as how different firms come to emerge and grow in the economy, relationships between different firms and the markets, and how to improve the exertion of a firm through its actions. The theory of a firm economic principle is very effective in ensuring that the costs incurred in the production process do not also exceed the lolly after production to prevent losses. The model balances between the internal and external transactions in each firm ensuring that the firm is able to grow with time (Surez 2012). For example, it is through this principle whereby the external transactions are always made to cost higher compared to the internal transactions for the firm to grow.There are various(a) economic principles, whi ch can be used to explain why the prices of maize fluctuated greatly over the pointedness in the past five years.