Energy and Thermodynamics
The Firm As A Heat Engine
By Administrator
First published on May 11, 2021. Last updated on May 11, 2021.
The firm is at the heart of microeconomics. For a firm to thrive, it must make a gross profit. Several of the concepts of firms and microeconomics are analogous to those concerning thermodynamics and heat engines.
For example, thermal energy removed from the hot reservoir \(Q_H\) is analogous to revenue (R). Thermal energy exhausted into the cold reservoir \(Q_C\) is analogous to cost (C).