Microeconomics 2011 Chapter 11 微观经济 教学课件.pptVIP

Short run versus Long run The difference between the long run and short run is not related to calendar time. For example, compare a food street vendor to an auto manufacturing company (i.e., Ford). How long would take for the food vendor to double the size of his or her plant (truck, oven, etc.) versus Ford to double its plant size (factory, computerized assembly lines and robotics, etc.)? * * The firm’s transition between the short run and long run revolves around the commitments made by the firm Be sure the students realize that accurate forecasting of market demand for a firm’s product is key to profitability, since it must make the proper long-run commitment to a given plant size. Show the students that if faulty market analysis causes a firm to commit to a plant that is too small (too large) when the required range of production is actually relatively high (relatively low), the firm will suddenly be locked into a much less competitive production cost situation with potentially dire consequences. * * * * * * * * * * * * * * * * * * * * * * * * * * The marginal pulls (but cannot not push) the average Don’t let the students fall into the trap of thinking that if the marginal measure rises (falls) with the level of an activity, then the average measure must also rise (fall). This is a sloppy statement of the relationship between marginal and average measures. Use the tried-and-true grade point average example used in the text. Explain that if their grade point average (GPA) is a 3.5, and their next marginal class grade is a C (2.0), followed by a B (3.0), this increasing marginal grade will not be pushing their GPA up at all. Conceptually, the students should understand that the marginal value can’t “push” the average measure higher when it is, itself, lower than the average measure. The marginal measure must be higher (lower) than the average value if the average value is to rise (fall) with the level of activity, thereby “pulling” the average from its positio