Ch 7微观经济学.pptVIP

Exhibit 11 A firm’s production function using labor and capital: production per month * Units of Capital employed per month Units of Labor employed per month 1 2 3 4 5 6 7 1 2 3 4 5 6 7 40 90 150 200 240 270 290 90 140 195 250 290 320 330 150 200 260 310 345 375 390 200 250 310 350 385 415 435 240 290 345 385 420 450 470 270 315 370 415 450 475 495 290 335 390 40 475 495 510 A closer look at production and cost Isoquants Farther from origin: greater output rates Negative slope Don’t intersect Convex to the origin * A closer look at production and cost Marginal rate of technical substitution MRTS Slope of isoquant MRTS = MPL/MPC * Exhibit 12 A firm’s isoquants * 0 5 Units of labor per month 10 Units of capital per month 5 10 Q1 (290) Q2 (415) Q3 (475) a b c d e h f g Q1: all technologically efficient combinations of labor and capital that can be used to produce 290 units of output Q2: 415 units of output Q3: 475 units of output Isoquants: - negative slope - convex to the origin A closer look at production and cost Isocost line All combinations of capital and labor Can be hired for a given total cost Are parallel Slope of isocost line Negative Price of labor divided by price of capital * Exhibit 13 A firm’s isocost lines * 5 10 15 0 Units of labor per month 5 10 Units of capital per month TC = $15,000 TC = $19,000 TC = $22,500 Slope = -w/r = -$1,500/$2,500 = -0.6 Each isocost line - Combinations of labor and capital that can be purchased for a given amount of total cost Slope is negative wage divided by the rental cost of capital Higher costs: isocost lines farther from origin A closer look at production and cost Profit maximization Cost minimization Minimum cost to produce a given output Tangency between isocost line and isoquant Slope = MRTS = w/r Expansion path * Exhibit 14 A firm’s optimal combination of inputs * Q1 (290) Q2 (415) Q3 (475) f 5 10 0 Units of labor per month 5 10 Units of capital per month TC = $19,000 a e e: isoquant Q2 is t