Businesses and the Costs of Production

Jul 29, 2012

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. Economic Costs. The payment that must be made to obtain and retain the services of a resourceExplicit CostsMonetary paymentsImplicit CostsValue of next best useSelf-owned resourcesIncludes normal profit. . LO1. 7-2. . Accounting Profit and Normal Profit. Accounting profit = Revenue

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Businesses and the Costs of Production

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The Costs of Production

9. C H A P T E R. The Costs of Production. ECONOMIC COSTS. Economic Costs or Opportunity Costs Forgoing the opportunity to produce alternative goods and services. Explicit Costs Implicit Costs. Economic Profit. Total Revenue. Economic Cost. ECONOMIC COSTS. Normal Profits.

675 views • 29 slides

The Costs of Production

13. The Costs of Production. What are Costs?. Total revenue Amount a firm receives for the sale of its output Total cost Market value of the inputs a firm uses in production Profit Total revenue minus total cost. What are Costs?. Costs as opportunity costs

611 views • 26 slides

The Costs of Production

The Costs of Production. Mr. Raposo. What is a business?. Business : An enterprise that brings individuals, financial and economic resources to produce goods or services. Sole Proprietorship : A business owned by a single person. Partnership : A business owned by two or more people.

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The Costs of Production

20. The Costs of Production. Chapter Objectives. Why Do Economic Costs Include Both Explicit Costs and Implicit Costs How Does the Law of Diminishing Returns Relate to a Firm’s Short-Run Production Costs

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The Costs of Production

The Costs of Production. Explicit and Implicit Costs Explicit Costs: Money payments that a firm makes for the use of resources owned by others (labor, materials, fuel, etc.)

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The Costs of Production

Chapter 8. The Costs of Production. Chapter Objectives. Explicit and implicit costs Law of diminishing returns Fixed and variable costs Total, average, and marginal costs The firm’s size in the long run. 8- 2. Economic Costs. Equal to opportunity costs Explicit + implicit costs

522 views • 27 slides

The Costs of Production

The Costs of Production. Chapter 13. Key determinant of a firm’s production and pricing decisions. Costs. Profit = Total Revenue – Total Cost Or Profit = the amount a firm receives for the sale of its output – the market value of the inputs a firm uses in production. Costs.

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The Costs of Production

The Costs of Production. Before anyone can consume to satisfy wants and needs, goods and services must be produced. Producers are profit-seeking, so they aim to produce a salable product at the lowest cost of resources used. Many times this means producing overseas. The Costs of Production.

448 views • 28 slides

The Costs of Production

12. The Costs of Production. What are Costs?. Total revenue Amount a firm receives for the sale of its output Total cost Market value of the inputs a firm uses in production Profit Total revenue minus total cost. What are Costs?. Costs as opportunity costs

412 views • 26 slides

The Costs of Production

13. The Costs of Production. M icroeonomics. P R I N C I P L E S O F. N. Gregory Mankiw. Premium PowerPoint Slides by Ron Cronovich. In this chapter, look for the answers to these questions:. What is a production function? What is marginal product? How are they related?

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The Costs of Production

13. The Costs of Production. E conomics. P R I N C I P L E S O F. N. Gregory Mankiw. Premium PowerPoint Slides by Ron Cronovich. A C T I V E L E A R N I N G 1 Brainstorming costs. You run General Motors. List 3 different costs you have.

836 views • 47 slides

The Costs of Production

12. The Costs of Production. E conomics. E S S E N T I A L S O F. N. Gregory Mankiw. Premium PowerPoint Slides by Ron Cronovich. A C T I V E L E A R N I N G 1 Brainstorming costs. You run General Motors. List 3 different costs you have.

794 views • 23 slides

The Costs of Production

The Costs of Production. The Law of Supply : Firms are willing to produce and sell a greater quantity of a good when the price of a good is high, due to typical productivity and cost behaviour. Supply. Total Revenue, Total Cost, Profit.

1.62k views • 17 slides

The Costs of Production

The Costs of Production. ECONOMIC COSTS. Explicit + Implicit costs Explicit costs Monetary payments to others Implicit costs Opportunity costs of owner Self-owned resources Self-employed resources. PROFITS. Accounting profit Total revenue minus explicit cost. Economic profit

473 views • 32 slides

The Costs of Production

13. The Costs of Production. What Does a Firm Do?. Firm’s Objective Firms seek to maximize profits Profits = Total Revenues minus Total Costs Choose Q such that Max {TR(Q*) –TC{Q*} Total revenue Revenue received fromsale of its output Total cost

165 views • 6 slides

The Costs of Production

13. The Costs of Production. E conomics. P R I N C I P L E S O F. N. Gregory Mankiw. A C T I V E L E A R N I N G 1 Brainstorming costs. You run General Motors. List 3 different costs you have. List 3 different business decisions that are affected by your costs. 1.

633 views • 47 slides

The Costs of Production

13. The Costs of Production. M icroeonomics. P R I N C I P L E S O F. N. Gregory Mankiw. Premium PowerPoint Slides by Ron Cronovich. A C T I V E L E A R N I N G 1 Brainstorming costs. You run General Motors. List 3 different costs you have.

711 views • 47 slides

The Costs of Production

The Costs of Production. CHAPTER 13. In this chapter, look for the answers to these questions:. What is a production function? What is marginal product? How are they related? What are the various costs, and how are they related to each other and to output?

771 views • 49 slides

The Costs of Production

The Costs of Production. What are Costs?. Total revenue Amount a firm receives for the sale of its output Total cost Market value of the inputs a firm uses in production Profit Total revenue minus total cost. What are Costs?. Costs as opportunity costs

246 views • 21 slides

The Costs of Production

319 views • 28 slides

The Costs of Production

The Costs of Production. The Law of Supply ä Firms are willing to produce and sell a greater quantity of a good when the price of the good is high. ä This results in a supply curve that slopes upward. The Firm’s Objective. The economic goal of the firm is to maximize profits.

693 views • 64 slides

The Costs of Production

The Costs of Production. WHAT ARE COSTS?. The Firm’s Objective The economic goal of the firm is to maximize profits. Maximum Profits. Total Revenue, Total Cost, and Profit. Total Revenue The amount a firm receives for the sale of its output. Total Cost

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