微观经济学及财务知识分析规范

,Chapter6,Production,Chapter6,Slide2,TopicstobeDiscussed,TheTechnologyofProductionIsoquantsProductionwithOneVariableInput(Labor)ProductionwithTwoVariableInputsReturnstoScale,Chapter6,Slide3,Introduction,Ourfocusisthesupplyside.Thetheoryofthefirmwilladdress:Howafirmmakescost-minimizingproductiondecisionsHowcostvarieswithoutputCharacteristicsofmarketsupplyIssuesofbusinessregulation,Chapter6,Slide4,TheTechnologyofProduction,TheProductionProcessCombininginputsorfactorsofproductiontoachieveanoutputCategoriesofInputs(factorsofproduction)LaborMaterialsCapital,Chapter6,Slide5,TheTechnologyofProduction,ProductionFunction:Indicatesthehighestoutputthatafirmcanproduceforeveryspecifiedcombinationofinputsgiventhestateoftechnology.Showswhatistechnicallyfeasiblewhenthefirmoperatesefficiently.,Chapter6,Slide6,TheTechnologyofProduction,Theproductionfunctionfortwoinputs:Q=F(K,L)Q=Output,K=Capital,L=LaborForagiventechnology,Chapter6,Slide7,Isoquants,AssumptionsFoodproducerhastwoinputsLabor(L)&Capital(K),Chapter6,Slide8,Isoquants,Observations:1)ForanylevelofK,outputincreaseswithmoreL.2)ForanylevelofL,outputincreaseswithmoreK.3)Variouscombinationsofinputsproducethesameoutput.,Chapter6,Slide9,Isoquants,IsoquantsCurvesshowingallpossiblecombinationsofinputsthatyieldthesameoutput,Chapter6,Slide10,ProductionFunctionforFood,120405565752406075859035575901001054658510011011557590105115120,CapitalInput12345,LaborInput,Chapter6,Slide11,ProductionwithTwoVariableInputs(L,K),Laborperyear,1,2,3,4,1,2,3,4,5,5,Q1=55,Theisoquantsarederivedfromtheproductionfunctionforoutputofof55,75,and90.,A,D,B,Q2=75,Q3=90,C,E,Capitalperyear,TheIsoquantMap,Chapter6,Slide12,Isoquants,Theisoquantsemphasizehowdifferentinputcombinationscanbeusedtoproducethesameoutput.Thisinformationallowstheproducertorespondefficientlytochangesinthemarketsforinputs.,InputFlexibility,Chapter6,Slide13,Isoquants,Short-run:Periodoftimeinwhichquantitiesofoneormoreproductionfactorscannotbechanged.Theseinputsarecalledfixedinputs.,TheShortRunversustheLongRun,Chapter6,Slide14,Isoquants,Long-runAmountoftimeneededtomakeallproductioninputsvariable.,TheShortRunversustheLongRun,Chapter6,Slide15,AmountAmountTotalAverageMarginalofLabor(L)ofCapital(K)Output(Q)ProductProduct,ProductionwithOneVariableInput(Labor),0100-110101010210301520310602030410802020510951915610108181371011216481011214091010812-4101010010-8,Chapter6,Slide16,Observations:1)Withadditionalworkers,output(Q)increases,reachesamaximum,andthendecreases.,ProductionwithOneVariableInput(Labor),Chapter6,Slide17,Observations:2)Theaverageproductoflabor(AP),oroutputperworker,increasesandthendecreases.,ProductionwithOneVariableInput(Labor),Chapter6,Slide18,Observations:3)Themarginalproductoflabor(MP),oroutputoftheadditionalworker,increasesrapidlyinitiallyandthendecreasesandbecomesnegative.,ProductionwithOneVariableInput(Labor),Chapter6,Slide19,LaborperMonth,OutputperMonth,60,112,0,2,3,4,5,6,7,8,9,10,1,ProductionwithOneVariableInput(Labor),Chapter6,Slide20,ProductionwithOneVariableInput(Labor),8,10,20,OutputperMonth,0,2,3,4,5,6,7,9,10,1,LaborperMonth,30,Chapter6,Slide21,Observations:WhenMP=0,TPisatitsmaximumWhenMPAP,APisincreasingWhenMPAP,APisdecreasingWhenMP=AP,APisatitsmaximum,ProductionwithOneVariableInput(Labor),ProductionwithOneVariableInput(Labor),LaborperMonth,OutputperMonth,60,112,0,2,3,4,5,6,7,8,9,10,1,A,B,C,D,8,10,20,E,0,2,3,4,5,6,7,9,10,1,30,OutputperMonth,LaborperMonth,Chapter6,Slide23,Astheuseofaninputincreasesinequalincrements,apointwillbereachedatwhichtheresultingadditionstooutputdecreases(i.e.MPdeclines).,ProductionwithOneVariableInput(Labor),TheLawofDiminishingMarginalReturns,Chapter6,Slide24,Whenthelaborinputissmall,MPincreasesduetospecialization.Whenthelaborinputislarge,MPdecreasesduetoinefficiencies.,TheLawofDiminishingMarginalReturns,ProductionwithOneVariableInput(Labor),Chapter6,Slide25,Canbeusedforlong-rundecisionstoevaluatethetrade-offsofdifferentplantconfigurationsAssumesthequalityofthevariableinputisconstant,TheLawofDiminishingMarginalReturns,ProductionwithOneVariableInput(Labor),Chapter6,Slide26,ExplainsadecliningMP,notnecessarilyanegativeoneAssumesaconstanttechnology,TheLawofDiminishingMarginalReturns,ProductionwithOneVariableInput(Labor),Chapter6,Slide27,TheEffectofTechnologicalImprovement,Laborpertimeperiod,Outputpertimeperiod,50,100,0,2,3,4,5,6,7,8,9,10,1,Chapter6,Slide28,Malthuspredictedmasshungerandstarvationasdiminishingreturnslimitedagriculturaloutputandthepopulationcontinuedtogrow.WhydidMalthuspredictionfail?,MalthusandtheFoodCrisis,Chapter6,Slide29,IndexofWorldFoodConsumptionPerCapita,1948-1952100196011519701231980128199013719951351998140,YearIndex,Chapter6,Slide30,MalthusandtheFoodCrisis,Thedatashowthatproductionincreaseshaveexceededpopulationgrowth.Malthusdidnottakeintoconsiderationthepotentialimpactoftechnologywhichhasallowedthesupplyoffoodtogrowfasterthandemand.,Chapter6,Slide31,MalthusandtheFoodCrisis,Technologyhascreatedsurplusesanddriventhepricedown.QuestionIffoodsurplusesexist,whyistherehunger?,Chapter6,Slide32,MalthusandtheFoodCrisis,AnswerThecostofdistributingfoodfromproductiveregionstounproductiveregionsandthelowincomelevelsofthenon-productiveregions.,Chapter6,Slide33,LaborProductivity,ProductionwithOneVariableInput(Labor),Chapter6,Slide34,LaborProductivityandtheStandardofLivingConsumptioncanincreaseonlyifproductivityincreases.DeterminantsofProductivityStockofcapitalTechnologicalchange,ProductionwithOneVariableInput(Labor),Chapter6,Slide35,LaborProductivityinDevelopedCountries,1960-19734.754.048.302.892.361974-19862.101.852.501.690.711987-19971.482.001.941.021.09,UnitedUnitedFranceGermanyJapanKingdomStates,AnnualRateofGrowthofLaborProductivity(%),$54,507$55,644$46,048$42,630$60,915,OutputperEmployedPerson(1997),Chapter6,Slide36,TrendsinProductivity1)U.S.productivityisgrowingataslowerratethanothercountries.2)Productivitygrowthindevelopedcountrieshasbeendecreasing.,ProductionwithOneVariableInput(Labor),Chapter6,Slide37,ExplanationsforProductivityGrowthSlowdown1)Growthinthestockofcapitalistheprimarydeterminantofthegrowthinproductivity.,ProductionwithOneVariableInput(Labor),Chapter6,Slide38,ExplanationsforProductivityGrowthSlowdown2)RateofcapitalaccumulationintheU.S.wasslowerthanotherdevelopedcountriesbecausetheotherswererebuildingafterWWII.,ProductionwithOneVariableInput(Labor),Chapter6,Slide39,ExplanationsforProductivityGrowthSlowdown3)Depletionofnaturalresources4)Environmentregulations,ProductionwithOneVariableInput(Labor),Chapter6,Slide40,ObservationU.S.productivityhasincreasedinrecentyearsWhatDoYouThink?Isitashort-termaberrationoranewlong-runtrend?,ProductionwithOneVariableInput(Labor),Chapter6,Slide41,ProductionwithTwoVariableInputs,Thereisarelationshipbetweenproductionandproductivity.Long-runproductionK&Larevariable.IsoquantsanalyzeandcomparethedifferentcombinationsofK&Landoutput,Chapter6,Slide42,TheShapeofIsoquants,Laborperyear,1,2,3,4,1,2,3,4,5,5,Inthelongrunbothlaborandcapitalarevariableandbothexperiencediminishingreturns.,Capitalperyear,Chapter6,Slide43,ReadingtheIsoquantModel1)Assumecapitalis3andlaborincreasesfrom0to1to2to3.Noticeoutputincreasesatadecreasingrate(55,20,15)illustratingdiminishingreturnsfromlaborintheshort-runandlong-run.,ProductionwithTwoVariableInputs,DiminishingMarginalRateofSubstitution,Chapter6,Slide44,ReadingtheIsoquantModel2)Assumelaboris3andcapitalincreasesfrom0to1to2to3.Outputalsoincreasesatadecreasingrate(55,20,15)duetodiminishingreturnsfromcapital.,DiminishingMarginalRateofSubstitution,ProductionwithTwoVariableInputs,Chapter6,Slide45,SubstitutingAmongInputsManagerswanttodeterminewhatcombinationifinputstouse.Theymustdealwiththetrade-offbetweeninputs.,ProductionwithTwoVariableInputs,Chapter6,Slide46,SubstitutingAmongInputsTheslopeofeachisoquantgivesthetrade-offbetweentwoinputswhilekeepingoutputconstant.,ProductionwithTwoVariableInputs,Chapter6,Slide47,SubstitutingAmongInputsThemarginalrateoftechnicalsubstitutionequals:,ProductionwithTwoVariableInputs,Chapter6,Slide48,MarginalRateofTechnicalSubstitution,Laborpermonth,1,2,3,4,1,2,3,4,5,5,Capitalperyear,Isoquantsaredownwardslopingandconvexlikeindifferencecurves.,Chapter6,Slide49,Observations:1)Increasinglaborinoneunitincrementsfrom1to5resultsinadecreasingMRTSfrom1to1/2.2)DiminishingMRTSoccursbecauseofdiminishingreturnsandimpliesisoquantsareconvex.,ProductionwithTwoVariableInputs,Chapter6,Slide50,Observations:3)MRTSandMarginalProductivityThechangeinoutputfromachangeinlaborequals:,ProductionwithTwoVariableInputs,Chapter6,Slide51,Observations:3)MRTSandMarginalProductivityThechangeinoutputfromachangeincapitalequals:,ProductionwithTwoVariableInputs,Chapter6,Slide52,Observations:3)MRTSandMarginalProductivityIfoutputisconstantandlaborisincreased,then:,ProductionwithTwoVariableInputs,Chapter6,Slide53,IsoquantsWhenInputsarePerfectlySubstitutable,Laborpermonth,Capitalpermonth,Chapter6,Slide54,Observationswheninputsareperfectlysubstitutable:1)TheMRTSisconstantatallpointsontheisoquant.,ProductionwithTwoVariableInputs,PerfectSubstitutes,Chapter6,Slide55,Observationswheninputsareperfectlysubstitutable:2)Foragivenoutput,anycombinationofinputscanbechosen(A,B,orC)togeneratethesamelevelofoutput(e.g.tollbooths&musicalinstruments),ProductionwithTwoVariableInputs,PerfectSubstitutes,Chapter6,Slide56,Fixed-ProportionsProductionFunction,Laborpermonth,Capitalpermonth,Chapter6,Slide57,Observationswheninputsmustbeinafixed-proportion:1)Nosubstitutionispossible.Eachoutputrequiresaspecificamountofeachinput(e.g.laborandjackhammers).,Fixed-ProportionsProductionFunction,ProductionwithTwoVariableInputs,Chapter6,Slide58,Observationswheninputsmustbeinafixed-proportion:2)Toincreaseoutputrequiresmorelaborandcapital(i.e.movingfromAtoBtoCwhichistechnicallyefficient).,Fixed-ProportionsProductionFunction,ProductionwithTwoVariableInputs,Chapter6,Slide59,AProductionFunctionforWheat,Farmersmustchoosebetweenacapitalintensiveorlaborintensivetechniqueofproduction.,Chapter6,Slide60,IsoquantDescribingtheProductionofWheat,Labor(hoursperyear),Capital(machinehourperyear),250,500,760,1000,40,80,120,Chapter6,Slide61,Observations:1)OperatingatA:L=500hoursandK=100machinehours.,IsoquantDescribingtheProductionofWheat,Chapter6,Slide62,Observations:2)OperatingatBIncreaseLto760anddecreaseKto90theMRTS1:,IsoquantDescribingtheProductionofWheat,Chapter6,Slide63,Observations:3)MRTS1,thereforethecostoflabormustbelessthancapitalinorderforthefarmersubstitutelaborforcapital.4)Iflaborisexpensive,thefarmerwouldusemorecapital(e.g.U.S.).,IsoquantDescribingtheProductionofWheat,Chapter6,Slide64,Observations:5)Iflaborisinexpensive,thefarmerwouldusemorelabor(e.g.India).,IsoquantDescribingtheProductionofWheat,Chapter6,Slide65,ReturnstoScale,Measuringtherelationshipbetweenthescale(size)ofafirmandoutput1)Increasingreturnstoscale:outputmorethandoubleswhenallinputsaredoubledLargeroutputassociatedwithlowercost(autos)Onefirmismoreefficientthanmany(utilities)Theisoquantsgetclosertogether,Chapter6,Slide66,ReturnstoScale,Labor(hours),Capital(machinehours),Chapter6,Slide67,ReturnstoScale,Measuringtherelationshipbetweenthescale(size)ofafirmandoutput2)Constantreturnstoscale:outputdoubleswhenallinputsaredoubledSizedoesnotaffectproductivityMayhavealargenumberofproducersIsoquantsareequidistantapart,Chapter6,Slide68,ReturnstoScale,Labor(hours),Capital(machinehours),ConstantReturns:Isoquantsareequallyspaced,Chapter6,Slide69,ReturnstoScale,Measuringtherelationshipbetweenthescale(size)ofafirmandoutput3)Decreasingreturnstoscale:outputlessthandoubleswhenallinputsaredoubledDecreasingefficiencywithlargesizeReductionofentrepreneurialabilitiesIsoquantsbecomefartherapart,Chapter6,Slide70,ReturnstoScale,Labor(hours),Capital(machinehours),DecreasingReturns:Isoquantsgetfurtherapart,Chapter6,Slide71,ReturnstoScaleintheCarpetIndustry,Thecarpetindustryhasgrownfromasmallindustrytoalargeindustrywithsomeverylargefirms.,Chapter6,Slide72,ReturnstoScaleintheCarpetIndustry,QuestionCanthegrowthbeexplainedbythepresenceofeconomiestoscale?,CarpetShipments,1996(MillionsofDollarsperYear),TheU.S.CarpetIndustry,1.ShawIndustries$3,2026.WorldCarpets$4752.MohawkIndustries1,7957.BurlingtonIndustries4503.BeaulieuofAmerica1,0068.Collins&Aikman4184.InterfaceFlooring8209.MaslandIndustries3805.Quee