微观经济学课件chapter07章节.pptVIP

Chapter 7 The Cost of Production PRODUCTION WITH TWO OUTPUTS—ECONOMIES OF SCOPE Product Transformation Curves Product Transformation Curve The product transformation curve describes the different combinations of two outputs that can be produced with a fixed amount of production inputs. The product transformation curves O1 and O2 are bowed out (or concave) because there are economies of scope in production. Figure 7.10 ● product transformation curve Curve showing the various combinations of two different outputs (products) that can be produced with a given set of inputs. PRODUCTION WITH TWO OUTPUTS—ECONOMIES OF SCOPE Economies and Diseconomies of Scope ● economies of scope Situation in which joint output of a single firm is greater than output that could be achieved by two different firms when each produces a single product. ● diseconomies of scope Situation in which joint output of a single firm is less than could be achieved by separate firms when each produces a single product. PRODUCTION WITH TWO OUTPUTS—ECONOMIES OF SCOPE In the trucking business, several related products can be offered, depending on the size of the load and the length of the haul. The range of possibilities raises questions about both economies of scale and economies of scope. The scale question asks whether large-scale, direct hauls are more profitable than individual hauls by small truckers. The scope question asks whether a large trucking firm enjoys cost advantages in operating both direct quick hauls and indirect, slower hauls. Because large firms carry sufficiently large truckloads, there is usually no advantage to stopping at an intermediate terminal to fill a partial load. Because other disadvantages are associated with the management of very large firms, the economies of scope get smaller as the firm gets bigger. The study suggests, therefore, that to compete in the trucking industry, a firm must be large enough to be able to combine loads at intermediate stopping poin