chapter_6Production(微观经济学-华侨大学,JeffCaldwe

Chapter6ProductionChapter6Slide2TopicstobeDiscussedTheTechnologyofProductionIsoquantsProductionwithOneVariableInput(Labor)ProductionwithTwoVariableInputsReturnstoScaleChapter6Slide3IntroductionOurfocusisthesupplyside.Thetheoryofthefirmwilladdress:Howafirmmakescost-minimizingproductiondecisionsHowcostvarieswithoutputCharacteristicsofmarketsupplyIssuesofbusinessregulationChapter6Slide4TheTechnologyofProductionTheProductionProcessCombininginputsorfactorsofproductiontoachieveanoutputCategoriesofInputs(factorsofproduction)LaborMaterialsCapitalChapter6Slide5TheTechnologyofProductionProductionFunction:Indicatesthehighestoutputthatafirmcanproduceforeveryspecifiedcombinationofinputsgiventhestateoftechnology.Showswhatistechnicallyfeasiblewhenthefirmoperatesefficiently.Chapter6Slide6TheTechnologyofProductionTheproductionfunctionfortwoinputs:Q=F(K,L)Q=Output,K=Capital,L=LaborForagiventechnologyChapter6Slide7IsoquantsAssumptionsFoodproducerhastwoinputsLabor(L)&Capital(K)Chapter6Slide8IsoquantsObservations:1)ForanylevelofK,outputincreaseswithmoreL.2)ForanylevelofL,outputincreaseswithmoreK.3)Variouscombinationsofinputsproducethesameoutput.Chapter6Slide9IsoquantsIsoquantsCurvesshowingallpossiblecombinationsofinputsthatyieldthesameoutputChapter6Slide10ProductionFunctionforFood120405565752406075859035575901001054658510011011557590105115120CapitalInput12345LaborInputChapter6Slide11ProductionwithTwoVariableInputs(L,K)Laborperyear1234123455Q1=55Theisoquantsarederivedfromtheproductionfunctionforoutputofof55,75,and90.ADBQ2=75Q3=90CECapitalperyearTheIsoquantMapChapter6Slide12IsoquantsTheisoquantsemphasizehowdifferentinputcombinationscanbeusedtoproducethesameoutput.Thisinformationallowstheproducertorespondefficientlytochangesinthemarketsforinputs.InputFlexibilityChapter6Slide13IsoquantsShort-run:Periodoftimeinwhichquantitiesofoneormoreproductionfactorscannotbechanged.Theseinputsarecalledfixedinputs.TheShortRunversustheLongRunChapter6Slide14IsoquantsLong-runAmountoftimeneededtomakeallproductioninputsvariable.TheShortRunversustheLongRunChapter6Slide15AmountAmountTotalAverageMarginalofLabor(L)ofCapital(K)Output(Q)ProductProductProductionwithOneVariableInput(Labor)0100------110101010210301520310602030410802020510951915610108181371011216481011214091010812-4101010010-8Chapter6Slide16Observations:1)Withadditionalworkers,output(Q)increases,reachesamaximum,andthendecreases.ProductionwithOneVariableInput(Labor)Chapter6Slide17Observations:2)Theaverageproductoflabor(AP),oroutputperworker,increasesandthendecreases.LQInputLaborOutputAPProductionwithOneVariableInput(Labor)Chapter6Slide18Observations:3)Themarginalproductoflabor(MP),oroutputoftheadditionalworker,increasesrapidlyinitiallyandthendecreasesandbecomesnegative..LQInputLaborOutputMPLProductionwithOneVariableInput(Labor)Chapter6Slide19TotalProductA:slopeoftangent=MP(20)B:slopeofOB=AP(20)C:slopeofOC=MP&APLaborperMonthOutputperMonth60112023456789101ABCDProductionwithOneVariableInput(Labor)Chapter6Slide20AverageProductProductionwithOneVariableInput(Labor)81020OutputperMonth02345679101LaborperMonth30EMarginalProductObservations:LeftofE:MPAP&APisincreasingRightofE:MPAP&APisdecreasingE:MP=AP&APisatitsmaximumChapter6Slide21Observations:WhenMP=0,TPisatitsmaximumWhenMPAP,APisincreasingWhenMPAP,APisdecreasingWhenMP=AP,APisatitsmaximumProductionwithOneVariableInput(Labor)ProductionwithOneVariableInput(Labor)LaborperMonthOutputperMonth60112023456789101ABCD81020E0234567910130OutputperMonthLaborperMonthAP=slopeoflinefromorigintoapointonTP,linesb,&c.MP=slopeofatangenttoanypointontheTPline,linesa&c.Chapter6Slide23Astheuseofaninputincreasesinequalincrements,apointwillbereachedatwhichtheresultingadditionstooutputdecreases(i.e.MPdeclines).ProductionwithOneVariableInput(Labor)TheLawofDiminishingMarginalReturnsChapter6Slide24Whenthelaborinputissmall,MPincreasesduetospecialization.Whenthelaborinputislarge,MPdecreasesduetoinefficiencies.TheLawofDiminishingMarginalReturnsProductionwithOneVariableInput(Labor)Chapter6Slide25Canbeusedforlong-rundecisionstoevaluatethetrade-offsofdifferentplantconfigurationsAssumesthequalityofthevariableinputisconstantTheLawofDiminishingMarginalReturnsProductionwithOneVariableInput(Labor)Chapter6Slide26ExplainsadecliningMP,notnecessarilyanegativeoneAssumesaconstanttechnologyTheLawofDiminishingMarginalReturnsProductionwithOneVariableInput(Labor)Chapter6Slide27TheEffectofTechnologicalImprovementLaborpertimeperiodOutputpertimeperiod50100023456789101AO1CO3O2BLaborproductivitycanincreaseifthereareimprovementsintechnology,eventhoughanygivenproductionprocessexhibitsdiminishingreturnstolabor.Chapter6Slide28Malthuspredictedmasshungerandstarvationasdiminishingreturnslimitedagriculturaloutputandthepopulationcontinuedtogrow.WhydidMalthus’predictionfail?MalthusandtheFoodCrisisChapter6Slide29IndexofWorldFoodConsumptionPerCapita1948-1952100196011519701231980128199013719951351998140YearIndexChapter6Slide30MalthusandtheFoodCrisisThedatas