5 FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.

Slides:



Advertisements
Similar presentations
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
Advertisements

Copyright©2004 South-Western 13 The Costs of Production.
Principles of Microeconomics
P449. p450 Figure 15-1 p451 Figure 15-2 p453 Figure 15-2a p453.
Costs of Production Chapter 13 (Week 10)
The Costs of Production Chapter 13 Copyright © 2004 by South-Western,a division of Thomson Learning.
5 FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Explaining Supply: The Costs of Production Law of Supply u Firms are willing.
Production and Costs. The How Question? From the circular flow diagram, resource markets determine input or resource prices. Profit-maximizing firms select.
© 2007 Thomson South-Western. The Costs of Production The Market Forces of Supply and Demand – Supply and demand are the two words that economists use.
Copyright©2004 South-Western 13 The Costs of Production.
Production and Costs.
The Costs of Production
Copyright © 2004 South-Western/ WHAT ARE COSTS? A Firm’s Objective The economic goal of a firm is to maximize profits.
The Costs of Production Chapter 13 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work.
Today’s Topic— Production and Costs of Production.
THEORY OF FIRM BEHAVIOR
Cost of Production ETP Economics 101.
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
The Costs of Production
The Costs of Production (Chapter 21) HAPPY MARCH… ONE WEEK UNTIL SPRING BREAK>>>
Today’s Topic-- Production and Output. Into Outputs Firms Turn Inputs (Factors of Production)
The Costs of Production Chapter 13 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work.
Section V Firm Behavior and the Organization of Industry.
FIRM BEHAVIOUR AND THE ORGANIZATION OF INDUSTRY
PowerPoint Slides prepared by: Andreea CHIRITESCU
Copyright©2004 South-Western The Costs of Production.
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
Chapter 13 The Cost of Production © 2002 by Nelson, a division of Thomson Canada Limited.
PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University The Costs of Production 1 © 2012 Cengage Learning. All Rights Reserved. May.
Post Grad Diploma - Class 2 Elasticity The beauty of Marginal Cost and Marginal Revenue Accounting and Economic Profits Different types of Markets.
Review of the previous lecture The goal of firms is to maximize profit, which equals total revenue minus total cost. When analyzing a firm’s behavior,
Review of Cost Functions and Supply Curve. Figure 1 Economists versus Accountants.
Copyright © 2010 Cengage Learning 17 Monopolistic Competition.
Copyright©2004 South-Western 13 The Costs of Production.
Welcome to the second half of 160! Professor Halcoussis Office BB 4257 Office Hours:  Tuesday and Thursday 11:30-12:30  Usually in office after this.
Copyright©2004 South-Western 13 The Costs of Production.
Copyright©2004 South-Western Mod 55 The Costs of Production.
5 FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.
5 FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY.
Production and Costs. Economic versus Accounting Costs Economic costs are theoretical constructs which are intended to aid in rational decision-making.
© 2007 Thomson South-Western WHAT ARE COSTS? The economic goal of business is to maximize profits.
Copyright©2004 South-Western The Costs of Production.
The Costs of Production 1. What are Costs? Total revenue –Amount a firm receives for the sale of its output Total cost –Market value of the inputs a firm.
The Costs of Production. The Market Forces of Supply and Demand Supply and demand are the two words that economists use most often. Supply and demand.
The Costs of Production.  Supply and demand are the two words that economists use most often.  Supply and demand are the forces that make market economies.
12 Production and Cost CHAPTER.
Fixed and Variable Costs
15 Monopoly.
Total Revenue, Total Cost, and Profit
Cost of Production ETP Economics 101.
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
Lecture 9 The Costs of Production
Lesson 6 Production Costs.
Principals of Economics Law Class
Costs: Economics and Accounting
© 2007 Thomson South-Western
Lesson 6 Production Costs.
FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY
Chapter Fifteen: Production Costs.
The Costs of Production
Firms in Competitive Markets
The Costs of Production
Unit 4: Costs of Production
Presentation transcript:

5 FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY

Copyright©2004 South-Western 13 Thinking Like an Economist

Copyright©2004 South-Western Figure 1 Economists versus Accountants

Table 1 A Production Function and Total Cost: Hungry Helen’s Cookie Factory Copyright©2004 South-Western

Figure 2 Hungry Helen’s Production Function

Copyright©2004 South-Western Figure 3 Hungry Helen’s Total-Cost Curve

Table 2 The Various Measures of Cost: Thirsty Thelma’s Lemonade Stand Copyright©2004 South-Western

Figure 4 Thirsty Thelma’s Total-Cost Curve

Copyright©2004 South-Western Figure 5 Thirsty Thelma’s Average-Cost and Marginal Cost Curves

Copyright©2004 South-Western Figure 6 Big Bob’s Cost Curves

Copyright©2004 South-Western Figure 6a Big Bob’s Cost Curves

Copyright©2004 South-Western Figure 6b Big Bob’s Cost Curves

Copyright©2004 South-Western Figure 7 Average Total Cost in the Short and Long Runs

Table 3 The Many Types of Cost: A Summary Copyright©2004 South-Western