《管理经济学》研究生课件IPPTChap005

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,5/2/2013,Copyright © 2013 by the McGraw-Hill Companies, Inc. All rights reserved.,‹#›,Chapter 5,The Production Process and Costs,McGraw-Hill/Irwin,Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.,Chapter Outline,The production function,Short- versus long-run decisions,Measures of productivity,Manager’s role in production process,Production function and productivity algebraic forms,Isoquants and isocosts,Cost minimization and optimal input substitution,The cost function,Short-run costs,Average and marginal costs,Relations among costs,Fixed and sunk costs,Cost function algebraic forms,Long-run costs and economies of scale,Multiple-output cost functions,Economies of scope and cost complementarity,,5-,2,,Chapter Overview,Introduction,Chapter 4 focused on how consumers adjust consumption decisions in reaction to price and income changes. The theory developed illustrates the underlying principles of individual and market demand curves.,This chapter examines how managers select the optimal mix of inputs that minimize production costs.,5-,3,,Chapter Overview,The Production Function,,5-,4,,The Production Function,Short-Run versus Long-Run Decisions: Fixed and Variable Inputs,Short-run,Period of time where some factors of production (inputs) are,fixed,, and constrain a manager’s decisions.,Long-run,Period of time over which all factors of production (inputs) are,variable,,,,and can be adjusted by a manager.,5-,5,,The Production Function,Measures of Productivity,,5-,6,,The Production Function,Measures of Productivity in Action,,5-,7,,The Production Function,Relation between Productivity Measures in Action,5-,8,Labor input,(holding capital constant),0,,Total product,Average product,Marginal product,,,Total product (,TP,),Average product (,AP,L,),Marginal product (,MP,L,),Increasing,marginal,returns to labor,Decreasing,marginal,returns to labor,Negative,marginal,returns to labor,The Production Function,The Manager’s Role in the Production Process,,5-,9,,The Production Function,Manager’s Role in the Production Process in Action,,5-,10,,The Production Function,Algebraic Forms of Production Functions,,5-,11,,The Production Function,Algebraic Forms of Production Functions in Action,,5-,12,,The Production Function,Algebraic Measures of Productivity,,5-,13,,The Production Function,Algebraic Measures of Productivity in Action,,5-,14,,The Production Function,Isoquants and Marginal Rate of Technical Substitution,,5-,15,,The Production Function,Isoquants and Marginal Rate of Technical Substitution in Action,5-,16,,Labor Input,0,,A,B,,,,,,Substituting labor for capital,,,Increasing output,Capital Input,The Production Function,Diminishing Marginal Rate of Technical Substitution in Action,5-,17,,Labor Input,0,,D,C,,Capital Input,B,A,,,,,,,,,,,The Production Function,Isocost and Changes in Isocost Lines,,5-,18,,The Production Function,Isocost Line,5-,19,,Labor Input,0,Capital Input,,,The Production Function,,,Changes in the Isocost Line,5-,20,,Labor Input,0,Capital Input,,The Production Function,Less expensive input,bundles,,,,More expensive input,bundles,Changes in the Isocost Line,5-,21,,Labor Input,0,Capital Input,The Production Function,,,,,Cost-Minimization Input Rule in Action,5-,22,,Labor Input,0,,,Capital Input,,The Production Function,,,,,,Cost Minimization and the Cost-Minimizing Input Rule,,5-,23,,The Production Function,Cost-Minimizing Input Rule in Action,,5-,24,,The Production Function,Optimal Input Substitution in Action,5-,25,,Labor Input,0,,B,,Capital Input,New cost-minimizing,point due to higher wage,,,,,A,Initial point of cost minimization,,,The Production Function,H,I,F,J,G,The Cost Function,,5-,26,,The Cost Function,Short-Run Costs in Action,5-,27,,Output,0,,,,,,,Total costs,Variable costs,Fixed costs,,The Cost Function,Average and Marginal Costs,,5-,28,,The Cost Function,The Relationship between Average and Marginal Costs in Action,5-,29,,Output,0,,,,ATC, AVC, AFC,and MC ($),,,,,,Minimum of ATC,Minimum of AVC,The Cost Function,Fixed and Sunk Costs,Fixed costs,Cost that does not change with output.,Sunk cost,Cost that is forever lost after it has been paid.,,Principle of Irrelevance of Sunk Costs,A decision maker should ignore sunk costs to maximize profits or minimize loses.,,,,5-,30,,The Cost Function,Long-Run Costs,In the long run, all costs are variable since a manager is free to adjust levels of all inputs.,Long-run average cost curve,A curve that defines the minimum average cost of producing alternative levels of output allowing for optimal selection of both fixed and variable factors of production.,5-,31,,The Cost Function,Long-Run Average Total Costs in Action,5-,32,,Output,0,LRAC ($),,,,,,,,,The Cost Function,,Economies of Scale,Economies of scale,Declining portion of the long-run average cost curve as output increase.,Diseconomies of scale,Rising portion of the long-run average cost curve as output increases.,Constant returns to scale,Portion of the long-run average cost curve that remains constant as output increases.,5-,33,,The Cost Function,Economies and Diseconomies of Scale in Action,5-,34,,Output,0,LRAC ($),,,The Cost Function,Economies of scale,Diseconomies of scale,,Constant Returns to Scale in Action,5-,35,,Output,0,LRAC ($),,,,,,,,The Cost Function,Multiple-Output Cost Function,,5-,36,,Multiple-Output Cost Function,Multiple-Output Cost Function in Action,,5-,37,,Multiple-Output Cost Function,Conclusion,,5-,38,,,5-,39,Labor Input,0,,Capital Input,,,,The Production Function,Cost-Minimization In Action,,Diminishing Marginal Rate of Technical Substitution in Action,5-,40,,Labor Input,0,,A,B,,Capital Input,C,D,,,,,,,,,,,The Production Function,,,5-,41,The Production Function,Cost-Minimization Input Rule In Action,Multiple-Output Cost Function in Action,,5-,42,,Multiple-Output Cost Function,。