1. Production Analysis and Compensation Policy Chapter 7 10E M ANAGERIAL E CONOMICS © 2003 South-Western/Thomson Learning M A R K H I R S C H E Y PowerPoint Presentation by Charlie Cook

2. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–2 Representative Production Surface Figure 7.1

3. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–3 Total, Average, and Marginal Product for Input X, Given Y = 2 Figure 7.2

4. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–4 Total Marginal, and Average Product Curves: (A) Total Product Curve for X, Holding Y = Y 1 ; (B) Marginal Product Curve for X, Holding Y = Y 1 Figure 7.3

5. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–5 Representative Isoquants for Table 7.1 Figure 7.4

6. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–6 Isoquants for Inputs with Varying Degrees of Substitutability: (A) Electric Power Generation; (B) Bicycle Production Figure 7.5a

7. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–7 Isoquants for Inputs with Varying Degrees of Substitution: (C) Dress Production Figure 7.5b

8. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–8 Maximum Variable Proportions for Inputs X and Y Figure 7.6

9. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–9 MRP Curve Is an Input Demand Curve Figure 7.7

10. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–10 Isocost Curves Figure 7.8

11. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–11 Optimal Input Combinations Figure 7.9

12. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–12 Returns to Scale May Be Constant, Decreasing, or Increasing Figure 7.10

13. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–13 Productivity Growth Jumped in the Late 1990s Figure 7.11

14. Managerial Economics 10e© 2003 South-Western/Thomson Learning7–14 Manufacturing Productivity Growth Has Been Impressive Figure 7.12