  Production theory, defined as the study of the economic process of
transforming inputs into outputs, consists of two simultaneous economic forces:
cost minimization and profit maximization. The cost minimization problem
involves deriving conditional factor demand functions and the cost function.
The profit maximization problem involves deriving the output supply function,
the profit function, and unconditional factor demand functions. Nested within
the process are Shephard's lemma, Hotelling's lemmas, direct and indirect
mathematical relations, and other elements contributing to the dynamics of the
process. The intricacies and hidden underlying influences pose difficulties in
presenting the material for an instructor, and inhibit learning by students.
Simply put, the primary aim of this paper is to facilitate the teaching and
learning of the production theory realm of Economics through the use of a
conceptual visual model. This paper proposes a pedagogical tool in the form of
a detailed graphic illustrating t he relationship between profit maximization
and cost minimization under technical constraints, with an emphasis on the
similarities and differences between the perfect competition and monopoly
cases. The potential that such a visual has to enhance learning when
supplementing traditional context is discussed under the context of
contemporary learning literature. Embedded in the discussion is an example of
how we believe our model could be conceptualized and utilized in a real-world
setting to evaluate an industrial project with an economic point of view.
