国外厂商理论讲稿.pdf

The Theory of the Firm Copyright 2004 – Biz/ed The Theory of the Firm Copyright 2004 – Biz/ed Production Function Copyright 2004 – Biz/ed Production Function • States the relationship between inputs and outputs. • Inputs – the factors of production classified as: – Land – all natural resources of the earth – not just ‘terra firma’! • Price paid to acquire land = Rent – Labour – all physical and mental human effort involved in production. • Price paid to labour = Wages – Capital – buildings, machinery and equipment not used for its own sake but for the contribution it makes to production. • Price paid for capital = Interest Copyright 2004 – Biz/ed Production Function Inputs Process Output Land Product or Labour service generated – value added Capital Copyright 2004 – Biz/ed Analysis of Production Function: Short Run • In the short run at least one factor fixed in supply but all other factors capable of being changed. • Reflects ways in which firms respond to changes in output (demand). • Can increase or decrease output using more or less of some factors but some likely to be easier to change than others. • Increase in total capacity only possible in the long run Copyright 2004 – Biz/ed Analysis of Production Function: Short Run