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Production Theory

by Jadrian

After running out of their primary ingredient, Mike suggests that they go back to producing using pseudoephedrine. Walter quickly points on that their equipment isn't designed for this and it will reduce their yield significantly. Mike argues that the alternative is not make anything at all and making some product is better than making no product. This scene serves as a nice example of why firms may operate at a loss rather than shut down. As long as the price of the product is greater than average variable costs, firms will operate in the short run.

Breaking Bad: Production Alternatives

Walter, Mike, and Jesse try to figure out how to make meth the old way

from Breaking Bad (2012)
Creator: Vince Gilligan
Distributor: AMC
Posted by Jadrian
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