ppt课件-chapter5- production（chapter5 -生产）.pptVIP

Chapter 5 Production Production Functions The purpose of a firm is to turn inputs into outputs. An abstract model of production is the production function, a mathematical relationship between inputs and outputs. Production Functions Letting q represent the output of a particular good during a period, K represent capital use, L represent labor input, and M represent raw materials, the following equation represents a production function. Two-Input Production Function An important question is how firms choose their levels of output and inputs. While the choices of inputs will obviously vary with