Copyright ©2003, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition Chapter 4: Production.

Slides:

Advertisements

Similar presentations

CHAPTER 5 The Production Process and Costs Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.

Advertisements

CH. 11: OUTPUT AND COSTS  Measure of relationship between output and cost  Short run costs  Fixed vs variable  Cost curves  Law of diminishing marginal.

10 Output and Costs Notes and teaching tips: 4, 7, 23, 27, 31, and 54.

Economic vs. Accounting Cost Short-Run vs. Long-Run Decisions Opportunity Cost 8 Behind the Supply Curve: Inputs and Costs.

Chapter 8 – Costs and production. Production The total amount of output produced by a firm is a function of the levels of input usage by the firm The.

11 OUTPUT AND COSTS. 11 OUTPUT AND COSTS Notes and teaching tips: 5, 8, 26, 29, 33, and 57. To view a full-screen figure during a class, click the.

Copyright © 2005 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Managerial Economics Thomas Maurice eighth edition Chapter 8.

1 ATC AVC MC Relationship Between Average and Marginal Costs Costs per unit Quantity Q1Q1 B Q0Q0 A.

10 OUTPUT AND COSTS CHAPTER.

CH. 10: OUTPUT AND COSTS  Measures of a firm’s costs.  Distinction between the short run and the long run  The relationship between a firm’s output.

1 Chapter 8 Costs of Production Costs of Production Principles of Economics by Fred M Gottheil PowerPoint Slides prepared by Ken Long © ©1999 South-Western.

9 - 1 Copyright McGraw-Hill/Irwin, 2005 Economic Costs Short-Run and Long-Run Short-Run Production Relationships Short-Run Production Costs Short-Run.

Today’s Topic— Production and Costs of Production.

THEORY OF FIRM BEHAVIOR

CH. 11: OUTPUT AND COSTS Measure of relationship between output and cost Production function Shows relationship between inputs and output Law of diminishing.

1 Chapter 7 Production Costs Key Concepts Summary Practice Quiz Internet Exercises Internet Exercises ©2002 South-Western College Publishing.

The Costs of Production 1 22 C H A P T E R Costs exist because resources Are scarce Productive Have alternative uses Use of a resource in a specific.

Businesses and the Costs of Production

The Costs of Production Chapter 8 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Businesses and the Costs of Production 10 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

The Costs of Production Chp: 8 Lecture: 15 & 16. Economic Costs  Equal to opportunity costs  Explicit + implicit costs  Explicit costs  Monetary payments.

Copyright McGraw-Hill/Irwin, 2005 Economic Costs Short-Run and Long-Run Short-Run Production Relationships Short-Run Production Costs Short-Run.

8 - 1 Economic Costs Short-Run and Long-Run Short-Run Production Relationships Short-Run Production Costs Short-Run Costs Graphically Productivity and.

The Production Process and Costs

Chapter 23: The Firm - Cost and Output Determination

COSTS OF THE CONSTRUCTION FIRM

Michael Parkin ECONOMICS 5e Output and Costs 1.

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. The Costs of Production Chapter 8.

1 Chapter 8 Costs and the Supply of Goods. 2 Overview  Shirking and the Principle-Agent Problem  The 3 Types of Business Firms  Economic vs. Accounting.

# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Businesses and Their Costs 6.

Economics 2010 Lecture 11’ Organizing Production (II) Production and Costs (The long run)

Economies of Scale Chapter 13 completion. The Shape of Cost Curves Quantity of Output Costs $ MC ATC AVC AFC.

Unit 3: The Costs of Production and Perfect Competition REVIEW ACTIVITY 1.

© 2007 Worth Publishers Essentials of Economics Krugman Wells Olney Prepared by: Fernando & Yvonn Quijano.

Review 1.Difference between fixed and variable resources 2.Define and give an example of the law of diminishing marginal returns 3.Identify the three stages.

The Costs of Production

1 Production Costs Economics for Today by Irvin Tucker, 6 th edition ©2009 South-Western College Publishing.

Businesses and the Costs of Production 07 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Average product is the output per worker

Copyright©2004 South-Western Mod 56 The Costs of Production.

Review Difference between fixed and variable resources

Production and Costs. Economic versus Accounting Costs Economic costs are theoretical constructs which are intended to aid in rational decision-making.

Copyright ©2003, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition Chapter 8: Labor Markets.

CONTEMPORARY ECONOMICS© Thomson South-Western 5.3Production and Cost  Understand how marginal product varies as a firm hires more labor in the short run.

Review 1.Difference between fixed and variable resources 2.Define and give an example of the law of diminishing marginal returns 3.Identify the three stages.

University of Hawai‘i at Mānoa Department of Economics ECON 130 (003): Principles of Economics (Micro) Gerard Russo Lecture.

Cost Curve Model Chapter 13 completion. Costs of Production Fixed costs - do not change with quantity of output Variable costs - ↑ with quantity of output.

1 © ©1999 South-Western College Publishing PowerPoint Slides prepared by Ken Long Principles of Economics 2nd edition by Fred M Gottheil.

Notes 4.3: Long-Run Cost Curves (the LRATC) 1. Review 1.Difference between fixed and variable resources 2.Give an example of the law of diminishing marginal.

Inputs of Labor Total Product Marginal Product Average Product 00XX Study Question 4.

© SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 5.31 LESSON 5.3 Production and Cost  Understand how marginal product varies as a firm employs more labor.

Production Function and Costs Lesson The Production Function (54) The Production Function is the relationship between inputs to a business.

Businesses and the Costs of Production 9 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Long Run Costs Module KRUGMAN'S MICROECONOMICS for AP* Micro:

1 of 41 chapter: 12 >> Krugman/Wells Economics ©2009  Worth Publishers Behind the Supply Curve: Inputs and Costs.

October 30, 2014 AP Economics 1.Return and Review Quiz 2.Lesson 3-3: LRATC.

Businesses and the Costs of Production 07 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 4: Production and the Costs of Production

Businesses and the Costs of Production

Chapter 5: Competition and Monopoly: Virtues and Vices

10 Businesses and the Costs of Production McGraw-Hill/Irwin

Cost Curve Model Chapter 13 completion.

Cost Curve Model Chapter 13 completion.

Economies of Scale Chapter 13 completion.

Businesses and the Costs of Production

The Costs of Production

Businesses and the Costs of Production

Presentation transcript:

Copyright ©2003, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition Chapter 4: Production and the Costs of Production

Carbaugh, Chap. 4 2 Short-run production function Production Functions Labor inputTotal productMarginal product (workers per day)(output per day)(output per day)0 11,0001,000 22,2001,200 33,5001,300 44,7001,200 55,8001,100 Production table for block company

Carbaugh, Chap. 4 3 Short-run production functions (cont’d) Production Functions TP MP Total product curve Marginal product curve Increasing marginal returns Diminishing marginal returns Total product Marginal product Labor input

Carbaugh, Chap. 4 4 Shifts in product curves Production Functions TP 1 MP 1 Increase in total product curveIncrease in marginal product curve Total product TP 0 Marginal product MP 0

Carbaugh, Chap. 4 5 Hypothetical short-run cost schedules Average Costs Total cost Costs Total fixed cost 50 Total variable cost Total Cost Average variable cost Average total cost Marginal cost

Carbaugh, Chap. 4 6 Hypothetical long-run average total cost curve Long-Run Costs Cost per unit Diseconomies of scale Constant returns to scale Economies of scale LRATC Q2Q2 Q1Q1

Carbaugh, Chap. 4 7 Shifts in cost curves Changing Costs Cost per unit Minimum cost after technological improvement, fall in resource prices or fall in taxes Initial minimum cost C0C0 C1C1 MC 0 ATC 0 MC 1 ATC 1