西方经济学66243631

ProductionandCostⅣ汪艳经济管理学院双语教学示范课程2019/9/262☻ProductionTheory☻CostTheory汪艳经济管理学院双语教学示范课程2019/9/263TheProductionFunction…showstherelationshipbetweenquantityofinputsusedtomakeagoodandthequantityofoutputofthatgood.Q=f(L，K，N，E)•Q=f(L，K)Long-run•Q=f(L，K)Short-run汪艳经济管理学院双语教学示范课程2019/9/264•MarginalProductMP=(dTP/dL)or(dTP/dK)Intheproductionprocess,marginalproductofanyinputistheincreaseinoutputthatarisesfromanadditionalunitofthatinput.•AverageProductAP=TP/LorAP=TP/K•TotalProductTP=f(L，K)汪艳经济管理学院双语教学示范课程2019/9/265aProductionFunction:Helen’scookiefactory汪艳经济管理学院双语教学示范课程2019/9/266QuantityofOutput(cookiesperhour)150140130120110100908070605040302010NumberofWorkersHired012345HungryHelen’sProductionFunctionMPTP汪艳经济管理学院双语教学示范课程2019/9/267•TheslopeofTPcurvemeasuresthemarginalproductofaninput.•Whenthemarginalproductdeclines,TPcurvebecomesflatter(decreasing).汪艳经济管理学院双语教学示范课程2019/9/268DiminishingMarginalProduct•…isthepropertywherebythemarginalproductofaninputdeclinesasthequantityoftheinputincreases.•Asmoreandmoreworkersarehiredatafirm,eachadditionalworkercontributeslessandlesstoproductionbecausethefirmhasalimitedamountofequipment.•Atthebeginningofproductionprocess…typicalproductioncurve汪艳经济管理学院双语教学示范课程2019/9/269-106.2-5809.625211512.51014151520151512.51010627277777570604525101010910810710610510410310210110MPLAPLTPLLKShort-run=汪艳经济管理学院双语教学示范课程2019/9/261000TUMUXX•MU＞0，TU↑increasing•MU＜0，TU↓decreasing•MU＝0，TUmax汪艳经济管理学院双语教学示范课程2019/9/261100TPMP,APLLTPL&MPL•MPL----theslopeofTPLcurve•MPL＞0，TPLincreasingMPLincreasing&decreasing•MPL＜0，TPLdecreasing•MPL＝0，TPLmaxAPLMPLTPLAPL&MPL•MPL＞APL，APLincreasing•MPL＜APL，APLdecreasing•MPL＝APL，APLmaxTPL&APL•APL---theslopeofsegmentwhichlinkstheoriginalandanypointonTPLcurve•WhenthesegmentisjustthetangentofTPLcurve,MPL＝APL，APLmaxL2L1L3ⅠⅢⅡ汪艳经济管理学院双语教学示范课程2019/9/2612long-runQ=f(L，K)•Isocostcurve•Isoquantcurve•Optimization汪艳经济管理学院双语教学示范课程2019/9/2613•Higherisoquantcurvesarepreferredtolowerones.•Isoquantcurvesdonotcross.•Isoquantcurvesaredownwardsloping.•Isoquantcurvesarebowedinward.FourPropertiesofIsoquantCurves汪艳经济管理学院双语教学示范课程2019/9/2614LK0Q1Q2CBAD⊿K⊿K⊿L⊿L汪艳经济管理学院双语教学示范课程2019/9/2615LawofDiminishingMarginalRateofTechnicalSubstitution•RTSLK=－⊿K/⊿L•Itistherateatwhichafirmiswillingtotradeonefactorforanother.RTS•If⊿L→0,RTSLK=－dK/dL汪艳经济管理学院双语教学示范课程2019/9/2616•C=w·L＋r·K•K=C/r－(w/r)·LWhatthefirmcanaffordTheslope(absolutevalue)oftheisocostlineequalstherelativepriceofthetwofactors.KL0C/wC/r汪艳经济管理学院双语教学示范课程2019/9/2617•Givencost,maximizequantity•Givenquantity,minimizecostProducerOptimumBestCombinationofFactors汪艳经济管理学院双语教学示范课程2019/9/2618LK0Q1ABOptimumEC汪艳经济管理学院双语教学示范课程2019/9/2619LK0Q1Q2Q3ABOptimumEC汪艳经济管理学院双语教学示范课程2019/9/2620ProducerOptimumoccurs……atthepointwherethehighestisoquantcurveandtheisocostcurvearetangent.汪艳经济管理学院双语教学示范课程2019/9/2621•C=w·L＋r·K;Q=f(L,K)•RTSLK=w/r•MPL/MPK=w/r•MPL/w=MPK/r汪艳经济管理学院双语教学示范课程2019/9/2622AccordingtotheLawofSupply:•Firmsarewillingtoproduceandsellagreaterquantityofagoodwhenthepriceofthegoodishigh.汪艳经济管理学院双语教学示范课程2019/9/2623Theeconomicgoalofthefirmistomaximizeprofits.汪艳经济管理学院双语教学示范课程2019/9/2624TotalRevenue,TotalCost,andProfit•TotalRevenueTheamountafirmreceivesforthesaleofitsoutput.•TotalCostThemarketvalueoftheinputsafirmusesinproduction.•Profit…isthefirm’sTRminusitsTC.汪艳经济管理学院双语教学示范课程2019/9/2625CostsasOpportunityCosts•Explicitcostsareinputcoststhatrequireadirectoutlayofmoneybythefirm.•Implicitcostsareinputcoststhatdonotrequireanoutlayofmoneybythefirm.Afirm’scostofproductionincludesalltheopportunitycostsofmakingitsoutputofgoodsandservices.ExplicitandImplicitCosts汪艳经济管理学院双语教学示范课程2019/9/2626EconomicProfit&AccountingProfitπ=TR（Q）－TC（Q）汪艳经济管理学院双语教学示范课程2019/9/2627•Economistsmeasureafirm’seconomicprofitasTRminusTC,includingbothexplicitandimplicitcosts.•Accountantsmeasuretheaccountingprofitasthefirm’sTRminusonlythefirm’sexplicitcosts.汪艳经济管理学院双语教学示范课程2019/9/2628WhenTRexceedsbothexplicitandimplicitcosts,thefirmearnseconomicprofit..Economicprofitissmallerthanaccountingprofit.Normalprofit汪艳经济管理学院双语教学示范课程2019/9/2629TypicalCostCurves•Therelationshipbetweenthequantityafirmcanproduceanditscostsdeterminespricingdecisions.汪艳经济管理学院双语教学示范课程2019/9/2630Formanyfirms,thedivisionofTCbetweenfixedandvariablecostsdependsonthetimehorizonbeingconsidered.•Intheshortrun,somecostsarefixed.•Inthelongrun,fixedcostsbecomevariablecosts.汪艳经济管理学院双语教学示范课程2019/9/2631TheVariousMeasuresofCost•Costsofproduction(TC)maybedividedintofixedcostsandvariablecosts.costsintheshort-run汪艳经济管理学院双语教学示范课程2019/9/2632FixedandVariableCosts•Fixedcostsarethosecoststhatdonotvarywiththequantityofoutputproduced.•Variablecostsarethosecoststhatdovarywiththequantityofoutputproduced.汪艳经济管理学院双语教学示范课程2019/9/2633TotalCosts•TotalFixedCosts(TFC)•TotalVariableCosts(TVC)•STC=TFC+TVC=r·K＋w·L(Q)汪艳经济管理学院双语教学示范课程2019/9/2634AverageCosts•ACcanbedeterminedbydividingthefirm’scostsbythequantityofoutputitproduces.•ACisthecostofeachtypicalunitofproduct.AverageTotalCostsSAC=STC/Q=AFC+AVCAverageFixedCostsAFC=TFC/QAverageVariableCostsAVC=TVC/Q汪艳经济管理学院双语教学示范课程2019/9/2635