TAILIEUCHUNG - Lecture Managerial economics: Chapter 7 - Dr. Hasnain Naqvi

An entrepreneur must put together resources: land, labour, capital - and produce. A product people will be willing and able to purchase. In this chapter provides knowledge of production. | PRODUCTION 1 Production An entrepreneur must put together resources -- land, labour, capital -- and produce a product people will be willing and able to purchase 2 PRODUCTION FUNCTION The relationship between the amount of input required and the amount of output that can be obtained is called the production function What can you say about Marginal Product ? As the quantity of a variable input (labour, in the example) increases while all other inputs are fixed, output rises. Initially, output will rise more and more rapidly, but eventually it will slow down and perhaps even decline. This is called the LAW OF DIMINISHING MARGINAL RETURNS 12 LAW OF DIMINISHING RETURNS It holds that we will get less & less extra output when we add additional doses of an input while holding other inputs fixed. it is also known as law of variable proportions. COMBINING RESOURCES There are many combinations of resources that could be used Consider the following table showing different number of .

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Economic principles
• Kinh tế học quản lý
• Fundamentals of managerial economics
• Production function
• Market interactions
• Marginal analysis
• Marginal benefit
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Costs of production
• Organizing production