Mark Hirschey管理经济学11版课件032428893X_47758.pptVIP

MANAGERIAL ECONOMICS 11th Edition By Mark Hirschey Production Analysis and Compensation Policy Chapter 8 Chapter 8OVERVIEW Production Functions Total, Marginal, and Average Product Law of Diminishing Returns to a Factor Input Combination Choice Marginal Revenue Product and Optimal Employment Optimal Combination of Multiple Inputs Optimal Levels of Multiple Inputs Returns to Scale Production Function Estimation Productivity Measurement Chapter 8 KEY CONCEPTS production function discrete production function continuous production function returns to scale returns to a factor total product marginal product average product law of diminishing returns isoquant technical efficiency input substitution marginal rate of technical ridge lines marginal revenue product economic efficiency net marginal revenue isocost curve (or budget line) constant returns to scale expansion path increasing returns to scale decreasing returns to scale output elasticity power production function productivity growth labor productivity multifactor productivity Production Functions Properties of Production Functions Production functions are determined by technology, equipment and input prices. Discrete production functions are lumpy. Continuous production functions employ inputs in small increments. Returns to Scale and Returns to a Factor Returns to scale measure output effect of increasing all inputs. Returns to a factor measure output effect of increasing one input. Total, Marginal, and Average Product Total Product Total product is total output. Marginal Product Marginal product is the change in output caused by increasing input use. If MPX=?Q/?X 0, total product is rising. If MPX=?Q/?X 0, total product is falling (rare). Average product APX=Q/X. Law of Diminishing Returns to a Factor Diminishing Returns to a Factor Concept MPX tends to diminish as X use grows. If MPX grew with use of X, there would be no limit to input usage. MPX 0 implies irrational input use (rare). Illustration of Dim