管理者经济学6(视角独特,专门为管理者而写的经济学).pptVIP

Chapter 6: Production and Cost Analysis in the Long Run Long-run Production Function Relationship between a flow of inputs and the resulting flow of output where all inputs are variable: Input Substitution Labor-intensive method: process that uses large amounts of labor relative to other inputs Capital-intensive method: process that uses large amounts of capital equipment relative to other inputs Input Substitution Input substitution: degree to which one input can be substituted for another Can occur in small-scale or large-scale business Some processes may not be conducive to substitution Issue is whether the same quality output is being produced with input substitution Factors Influencing Input Substitution Technology Prices of inputs Incentives facing a given producer Role of Competitive Environments X-inefficiency: inefficiency that may result in firms with market power having fewer incentives to minimize costs Best practices: production techniques adopted by firms with the highest levels of productivity Lean production: streamlines production through strict scheduling and small-batch production Role of Competitive Environments Nonprofit organizations have fewer incentives to minimize production costs Political and legislative influences affect production costs, sometimes with unforeseen consequences Model of Long-runAverage Cost Function Economies of Scale Economies of scale: the average costs of production are lowered as the firm produces larger output levels with an increased scale of production Diseconomies of scale: higher unit costs of production results with larger scale of production Factors Creating Economies of Scale Specialization and division of labor Technological factors Use of automation devices Factors Creating Diseconomies of Scale Inefficiencies of managing large-scale operations Increased transportation costs resulting from concentrating production in a small number of large plants Important limitation to large-scale production is the man