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Chapter 6

Chapter 6. Production. Topics to be Discussed. The Technology of Production Isoquants Production with One Variable Input (Labor) Production with Two Variable Inputs Returns to Scale. Introduction. Our focus is the supply side . The theory of the firm will address:

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Chapter 5

Chapter 5. Production. Introduction. Focus is the supply side . The theory of the firm will address: How a firm makes cost-minimizing production decisions How cost varies with output Characteristics of market supply. The Technology of Production. The Production Process

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Ch 6 Production and Costs

Ch 6 Production and Costs. Production and Costs in the Short Run Production: TP L , MP L , AP L Costs: TC(=TFC+TVC), ATC(=AFC+AVC), MC Production and Costs in the Long Run Isoquant, MRTS Isocost, P L /P K Relations Between the S- Run and the L- Run From Isoquant to SRTC

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568 views • 42 slides

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Mp ap ap - PowerPoint PPT Presentation

Chapter 6

Chapter 5

Ch 6 Production and Costs