中微经济讲义7－生产函数.pdf

Chapter 7 PRODUCTION FUNCTIONS By WALTER NICHOLSON Slides prepared by Linda Ghent (Eastern Illinois University) Modified by Huihua NIE (Renmin Unversity of China) 1 Retrospection • How do we analyze the consumer’s choice ? • Indifferent curve, budget line, or utility function and budget equation • So, what will we do on the producer’s choice? 2 Production Function • The firm is a box from input to output • The firm’s production function for a particular good (q) shows the maximum amount of the good that can be produced using alternative combinations of capital (k) and (simple) labor (l) q = f(k,l) 3 Marginal Physical Product • To study variation in a single input, we define marginal physical product as the additional output that can be produced by employing one more unit of that input q marginal physical product of capital MP f k k k