microeconomics Production参考.ppt

Production The Production Decisions of a Firm THE TECHNOLOGY OF PRODUCTION The Production Function THE TECHNOLOGY OF PRODUCTION The Short Run versus the Long Run PRODUCTION WITH ONE VARIABLE INPUT (LABOR) PRODUCTION WITH ONE VARIABLE INPUT (LABOR) Average and Marginal Products PRODUCTION WITH ONE VARIABLE INPUT (LABOR) The Slopes of the Product Curve PRODUCTION WITH ONE VARIABLE INPUT (LABOR) The Slopes of the Product Curve PRODUCTION WITH ONE VARIABLE INPUT (LABOR) The Law of Diminishing Marginal Returns PRODUCTION WITH ONE VARIABLE INPUT (LABOR) PRODUCTION WITH ONE VARIABLE INPUT (LABOR) Labor Productivity PRODUCTION WITH ONE VARIABLE INPUT (LABOR) PRODUCTION WITH TWO VARIABLE INPUTS Isoquants PRODUCTION WITH TWO VARIABLE INPUTS Isoquants PRODUCTION WITH TWO VARIABLE INPUTS Diminishing Marginal Returns PRODUCTION WITH TWO VARIABLE INPUTS Substitution Among Inputs PRODUCTION WITH TWO VARIABLE INPUTS Production Functions—Two Special Cases PRODUCTION WITH TWO VARIABLE INPUTS Production Functions—Two Special Cases PRODUCTION WITH TWO VARIABLE INPUTS RETURNS TO SCALE RETURNS TO SCALE Describing Returns to Scale RETURNS TO SCALE MEASURING COST: WHICH COSTS MATTER? 7.1 Fixed Costs and Variable Costs ● total cost (TC or C) Total economic cost of production, consisting of fixed and variable costs. ● fixed cost (FC) Cost that does not vary with the level of output and that can be eliminated only by shutting down. ● variable cost (VC) Cost that varies as output varies. The only way that a firm can eliminate its fixed costs is by shutting down. MEASURING COST: WHICH COSTS MATTER? 7.1 Fixed Costs and Variable Costs Shutting Down Shutting down doesn’t necessarily mean going out of business. By reducing the output of that factory to zero, the company could eliminate the costs of raw materials and much of the labor. The only way to eliminate fixed costs would be to close the doors, turn off the electricity, and perhaps even sell off or scrap the machinery. Fixed or Var