TAILIEUCHUNG - Lecture Managerial economics (Ninth edition): Chapter 8 – Thomas, Maurice

Chapter 8 - Production and cost in the short run. When you finish this chapter, you should: Understand the information given by a production function; explain two efficiency concepts: technical efficiency and economic efficiency; define and give examples of three types of inputs used in production: variable inputs, fixed inputs, and quasi-fixed inputs;. | Chapter 8 Production & Cost in the Short Run Basic Concepts of Production Theory Production function Maximum amount of output that can be produced from any specified set of inputs, given existing technology Technical efficiency Achieved when maximum amount of output is produced with a given combination of inputs Economic efficiency Achieved when firm is producing a given output at the lowest possible total cost 8- Basic Concepts of Production Theory Inputs are considered variable or fixed depending on how readily their usage can be changed Variable input An input for which the level of usage may be changed quite readily Fixed input An input for which the level of usage cannot readily be changed and which must be paid even if no output is produced Quasi-fixed input An input employed in a fixed amount for any positive level of output that need not be paid if output is zero 8- Basic Concepts of Production Theory Short run At least one input is fixed All changes in output achieved

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Microeconomic theory
• Economic theory
• Production theory
• Short run marginal cost
• Market interactions
• Fundamentals of managerial economics
• Marginal analysis
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• 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
• Production function
• Costs of production
• Organizing production