国外厂商理论讲稿(1)

Copyright2004–Biz/edTheTheoryoftheFirmCopyright2004–Biz/edTheTheoryoftheFirmCopyright2004–Biz/edProductionFunctionCopyright2004–Biz/edProductionFunction•Statestherelationshipbetweeninputsandoutputs.•Inputs–thefactorsofproductionclassifiedas:–Land–allnaturalresourcesoftheearth–notjust‘terrafirma’!•Pricepaidtoacquireland=Rent–Labour–allphysicalandmentalhumaneffortinvolvedinproduction.•Pricepaidtolabour=Wages–Capital–buildings,machineryandequipmentnotusedforitsownsakebutforthecontributionitmakestoproduction.•Pricepaidforcapital=InterestCopyright2004–Biz/edProductionFunctionInputsProcessOutputLandLabourCapitalProductorservicegenerated–valueaddedCopyright2004–Biz/edAnalysisofProductionFunction:ShortRun•Intheshortrunatleastonefactorfixedinsupplybutallotherfactorscapableofbeingchanged.•Reflectswaysinwhichfirmsrespondtochangesinoutput(demand).•Canincreaseordecreaseoutputusingmoreorlessofsomefactorsbutsomelikelytobeeasiertochangethanothers.•IncreaseintotalcapacityonlypossibleinthelongrunCopyright2004–Biz/edAnalysisofProductionFunction:ShortRunIntimesofrisingsales(demand)firmscanincreaselabourandcapitalbutonlyuptoacertainlevel–theywillbelimitedbytheamountofspace.Inthisexample,landisthefixedfactorwhichcannotbealteredintheshortrun.Copyright2004–Biz/edAnalysisofProductionFunction:ShortRunIfdemandslowsdown,thefirmcanreduceitsvariablefactors–inthisexampleitreducesitslabourandcapitalbutagain,landisthefactorwhichstaysfixed.Copyright2004–Biz/edAnalysisofProductionFunction:ShortRunIfdemandslowsdown,thefirmcanreduceitsvariablefactors–inthisexample,itreducesitslabourandcapitalbutagain,landisthefactorwhichstaysfixed.Copyright2004–Biz/edAnalysingtheProductionFunction:LongRun•Thelongrunisdefinedastheperiodoftimetakentovaryallfactorsofproduction.–Bydoingthis,thefirmisabletoincreaseitstotalcapacity–notjustshorttermcapacity–Associatedwithachangeinthescaleofproduction–Theperiodoftimevariesaccordingtothefirmandtheindustry.–Inelectricitysupply,thetimetakentobuildnewcapacitycouldbemanyyears;foramarketstallholder,the‘longrun’couldbeaslittleasafewweeksormonths!Copyright2004–Biz/edAnalysisofProductionFunction:LongRunInthelongrun,thefirmcanchangeallitsfactorsofproductionthusincreasingitstotalcapacity.Inthisexampleithasdoubleditscapacity.Copyright2004–Biz/edProductionFunction•Mathematicalrepresentationoftherelationship:•Q=f(K,L,La)•Output(Q)isdependentupontheamountofcapital(K),Land(L)andLabour(La)used.Copyright2004–Biz/edCostsCopyright2004–Biz/edCosts•Inbuyingfactorinputs,thefirmwillincurcosts•CostsareClassifiedas:–Fixedcosts–coststhatarenotrelateddirectlytoproduction–rent,rates,insurancecosts,admincosts.Theycanchangebutnotinrelationtooutput.–VariableCosts–costsdirectlyrelatedtovariationsinoutput.Rawmaterialsprimarily.Copyright2004–Biz/edCosts•TotalCost-thesumofallcostsincurredinproduction•TC=FC+VC•AverageCost–thecostperunitofoutput•AC=TC/Output•MarginalCost–thecostofonemoreoronefewerunitsofproduction•MC=TCn–TCn-1unitsCopyright2004–Biz/edCosts•Shortrun–Diminishingmarginalreturnsresultsfromaddingsuccessivequantitiesofvariablefactorstoafixedfactor•Longrun–Increasesincapacitycanleadtoincreasing,decreasingorconstantreturnstoscaleCopyright2004–Biz/edRevenueCopyright2004–Biz/edRevenue•Totalrevenue–thetotalamountreceivedfromsellingagivenoutput•TR=PxQ•AverageRevenue–theaverageamountreceivedfromsellingeachunit•AR=TR/Q•Marginalrevenue–theamountreceivedfromsellingoneextraunitofoutput•MR=TRn–TRn-1unitsCopyright2004–Biz/edProfitCopyright2004–Biz/edProfit•Profit=TR–TC•Therewardforenterprise•Profitshelpintheprocessofdirectingresourcestoalternativeusesinfreemarkets•RelatingpricetocostshelpsafirmtoassessprofitabilityinproductionCopyright2004–Biz/edProfit•NormalProfit–theminimumamountrequiredtokeepafirminitscurrentlineofproduction•AbnormalorSupernormalprofit–profitmadeoverandabovenormalprofit–Abnormalprofitmayexistinsituationswherefirmshavemarketpower–Abnormalprofitsmayindicatetheexistenceofwelfarelosses–CouldbetaxedawaywithoutalteringresourceallocationCopyright2004–Biz/edProfit•Sub-normalProfit–profitbelownormalprofit–Firmsmaynotexitthemarketevenifsub-normalprofitsmadeiftheyareabletocovervariablecosts–Costofexitmaybehigh–Sub-normalprofitmaybetemporary(orperceivedassuch!)Copyright2004–Biz/edProfit•Assumptionthatfirmsaimtomaximiseprofit•Maynotalwaysholdtrue-thereareotherobjectives•ProfitmaximisingoutputwouldbewhereMC=MRCopyright2004–Biz/edProfitWhy?Cost/RevenueOutputMRMR–theadditiontototalrevenueasaresultofproducingonemoreunitofoutput–thepricereceivedfromsellingthatextraunit.MCMC–ThecostofproducingONEextraunitofproduction100Assumeoutputisat100units.TheMCofproducingthe100thunitis20.TheMRreceivedfromsellingthat100thunitis150.Thefirmcanaddthedifferenceofthecostandtherevenuereceivedfromthat100thunittoprofit(130)20150TotaladdedtoprofitIfthefirmdecidestoproduceonemoreunit–the101st–theadditiontototalcostisnow18,theadditiontototalrevenueis140–thefirmwilladd128toprofit.–itisworthexpandingoutput.10118140Addedtototalprofit30120AddedtototalprofitTheprocesscontinuesforeachs