Production and Cost

1. Production and Cost

2. ปัจจัยการผลิต กระบวนการผลิต ผลผลิต Production Process กระบวนการผลิต ( Production Process) : กระบวนการเปลี่ยนแปลงสภาพของปัจจัยการผลิต ( Inputs ) ให้เป็นสินค้าและบริการ ( Outputs ) ด้วยเทคโนโลยีที่กำหนดให้

3. Output Y = f(X) Technically Efficient Technically Inefficient Production Set( Feasible for Production ) Input Technology Constraint

4. Production Function

5. Production Function

6. Production Table

7. Production Graph

9. Output Y = f(K3,L) Y = f(K2,L) Y = f(K1,L) L

10. Short - Run Production • Fixed Factors • Variable Factors • Total Product • Average Product • Marginal Product

11. Output L MP AP L

14. Short - Run Cost • Fixed Cost • Variable Cost • Total Cost • Average Cost • Marginal Cost

15. TC Cost VC T M V FC Q MC AC AVC T’ V’ M’ Q

18. Production Table

19. K L Long - Run Production • Variable Factors • Isoquant

20. K K L L

21. Increase all inputs in same proportion Production ? Homogeneous Property

22. Homogeneous Degree 1 X = 1

25. K L Marginal Rate of Technical Substitution ( MRTS)

26. Slope Isoquant

27. Elasticity of Substitution

28. K A B L O

29. Elasticity of Output Find Elasticity of Capital and Labor

30. H A 5 Q = 250 L 10 Special Production Function Linear Production Function

31. O A 5 Q = 5 H 10 Special Production Function Fixed Proportion Production Function

32. K L Special Production Function Cobb-Douglas Production Function

33. K 1 L Special Production Function Constant Elasticity of Substitution Production Function 1

34. K Before: Q = 100 After: Q = 100 L Technological Progress Neutral Technological Progress

35. Labor Saving Technological Progress K Before: Q = 100 After: Q = 100 L Technological Progress

36. Capital Saving Technological Progress K Before: Q = 100 After: Q = 100 L Technological Progress

37. Long - Run Production VS Long - Run Cost

38. AC,MC MC1 LAC SAC1 Q

39. K K TC/r TC2 Q3 Q2 Q2 TC3 Q1 TC1 L L TC/W Long Run Cost : Maximize Output given Cost Minimize Cost given Output

40. Slope Isoquant = Slope Isocost == MRTS

41. example Least Cost Combination

42. Corner Solution K IC Q2 L TC3 TC1 TC2

44. K Expansion Path Q2 L TC3 TC1 TC2

45. K Expansion Path Q3 K1 Q2 L TC1 TC2 TC3

46. Increase all inputs in same proportion Production ? Constant Return to Scale Increasing Return to Scale Decreasing Return to Scale Return to Scale

47. AC,MC K Expansion Path LAC 2K Q K 2Q Q L L 2L Constant RTC

48. AC,MC K Expansion Path LAC 2K Q K Q2 Q1 L L 2L Increasing RTC Q2 > 2Q1

49. AC,MC K LAC Expansion Path 2K Q K Q2 Q1 L L 2L Decreasing RTC Q2 < 2Q1

50. Constant RTS Decreasing RTS Increasing RTS example