In a capitalist economy, manager of industries are continuously faced with numerous choices. How many workers should the firm employed to produce these output? How much output should they produce? What techniques should be employed to produce this output? and how much should the firm spend on new plant and equipment in a given year? Also managers often times are assumed to have certain objectives such as the maximization of profits or shareholders wealth, or the minimization of the costs of producing a given level of output.
