ELI5: Explain Like I'm 5

Producer theory

Producer theory is all about figuring out the best way for businesses to make more money. It's like a game where businesses are trying to figure out the best way to use their money, employees, and everything else they have to get the biggest reward they can. They look at the cost of the things they need to do their business (like rent, materials, or wages for employees) and try to figure out how to use those things to make the most money. Like a game of chess, businesses think ahead about what their decisions today will mean for their future profits.