BAB 5

THEORY OF PRODUCTION
Teori Pengeluaran
Production is a process that transforms resources into finished goods to fulfil

consumer needs.

The main purposes of production is to fully utilize inputs or factors of

production, i.e. land, labour, capital, and entrepreneurship to efficiently produce
products or outputs in order to maximise profit.

Pengeluaran merupakan satu proses transformasi sumber-sumber kepada

barang siap yang dapat memenuhi keperluan orang ramai.

Tujuan utama proses pengeluaran ialah menggunakan semua input atau faktor
pengeluaran , iaitu tanah, buruh, modal, dan usahawan dalam kombinasi yang
paling cekap untuk menghasilkan keluaran atau output bagi tujuan
memaksimumkan keuntungan.

FACTORS OF PRODUCTION
FAKTOR PENGELUARAN
Factors of production are resourses that are used to produce goods and services.
Factors of production are inputs in the process of production.
Faktor pengeluaran merupakan sumber yang digunakan untuk mengeluarkan barang
dan perkhidmatan.Faktor pengeluaran merupakan input dalam proses pengeluaran.
LAND
Refers to natural resources, whether on the surface of the earth or on the seabed.
The supply of land is limited, inherently fixed, and non-homogeneous in quality.
The payment for land is rent.
TANAH
Tanah merujuk kepada sumber alam semula jadi sama ada di permukaan bumi atau di
dasar laut.
Penawaran tanah adalah terhad, bersifat tetap dan tidak homogen dari segi kualiti.
Pulangan kepada tanah adalah sewa.

LABOUR
Labour consists of skilled and unskilled labours that supply physical and mental
energy to the production of goods and services.
Labour is easily moved from one place to another.
The payment of labour is a wage.

BURUH
Buruh terdiri daripada buruh mahir dan buruh tidak mahir yang menyumbangkan
tenaga fizikal dan mental dalam proses pengeluaran untuk menghasilkan barang dan
perkhidmatan.
Buruh mudah dipindahkan dari satu tempat ke tempat yang lain.
Pulangan kepada buruh ialah upah.

CAPITAL
Capital consists of man-made items including cash capital, fixed capital such as
equipment and machinery, and work capital such as raw materials that are used use as
inputs in the production process.
The payment for capital is interest or dividends.
MODAL
Modal merupakan benda ciptaan manusia yang meliputi modal wang, modal tetap
seperti peralatan dan jentera dan modal kerja seperti bahan mentah yang digunakan
sebagai input dalam proses pengeluaran.
Pulangan kepada modal ialah faedah ( bunga).
ENTREPRENEURSHIP
Entrepreneurs are people with the skill and ability to manage a firm efficiently and
profitably
The payment for the risk of entrepreneurship is a profit.
USAHAWAN (PENGUSAHA)
Usahawan merupakan seseorang yang mempunyai kemahiran dan kebolehan
untuk menguruskan sebuah firma secara cekap dan menguntungkan.
Pulangan kepada usahawan adalah kerana kesediaan mengambil risiko ialah
keuntungan.

TECHNOLOGY

Technology is not an economic resource or production input. Technology

is a man-made factor of production.
The return on technology is output or productivity.
TEKNOLOGI
Teknologi bukan merupakan sumber ekonomi atau input pengeluaran. Teknologi
merupakan salah satu daripada faktor pengeluaran dan merupakan hasil ciptaan manusia.
Pulangan kepada teknologi ialah daya pengeluaran atau produktiviti.

INPUTS OF PRODUCTION

There are two type of input in the production process: fixed inputs and variable inputs.
INPUT PENGELUARAN
Dalam proses pengeluaran, terdapat dua jenis input, iaitu input tetap dan input berubah.

Fixed inputs:
1.Fixed inputs are inputs that cannot be increased or decreased in the short run.
2.Fixed inputs will not change when there is a change in production.
3.Example of fixed inputs are buildings, land, and machinery.
Variable inputs :
1. Variable inputs are inputs that can be increased or decreased in the short run.
2. Variable inputs will change when there is a change in production.
3. Examples of variable inputs are raw materials and labour.
Input Tetap:
1. Input tetap ialah input yang tidak boleh ditambah atau dikurangkan dalam jangka masa
pendek.
2. Input tetap tidak akan berubah apabila berlaku perubahan dalam kuantiti keluaran.
3. Contoh input tetap ialah bangunan, tanah, jentera.
Input Berubah:
1. Input berubah ialah input yang boleh ditambah atau dikurangkan dalam jangka masa
pendek.
2. Input berubah akan berubah apabila berlaku perubahan dalam kuantiti keluaran.
3. Contoh input berubah ialah bahan mentah dan buruh.

CHAPTER 5
Bab 5

THEORY OF PRODUCTION AND COST

PRODUCTION
TEORI PENGELUARAN DAN KOS
PENGELUARAN
Maizatul nasbah bt abbas
Terrance a/l rajimand
Siti nur hafiezaty bt abdullah

PRODUCTION TERMS : PRODUCTION UNITS,

OUTPUTS, PLANTS/FACTORIES, INDUSTRIES,
AND TIME PERIODS
(ISTILAH PENGELUARAN:UNIT PENGELUARAN, OUTPUT, LOJI, FIRMA,INDUSTRI DAN JANGKA MASA)

PRODUCTION UNITS

Production units are agents that change inputs into outputs.

Production units are firms or industries that use factors of production to produce gooods and services.
OUTPUTS

Outputs are the product of production activities.

Outputs consist of intermediate goods and final goods or finished goods.

Intermediate goods are outputs that are produced by one production unit to be used as inputs for another
production unit. Example of an intermediate goods is a machine.
PLANTS/FACTORIES

Physical tools are used in the production of goods and services.

Examples of plants are office buildings and factories

UNIT PENGELUARAN

Unit pengeluaran ialah agen yang mengubah input kepada output.

Unit pengeluaran terdiri daripada firma atau industri yang menggunakan faktor-faktor pengeluaran untuk
menghasilkan barang dan perkhidmatan
OUTPUT

Output ialah hasil yang diperoleh daripada aktiviti pengeluaran.

Output terdiri daripada barang perantaraan dan barang akhir atau barang siap.

Barang perantaraan ialah output yang dihasilkan oleh satu unit pengeluaran untuk digunakan sebagai input oleh unit
pengeluaran yang lain. Contoh barang perantaraan ialah mesin.
LOJI/PERKILANGAN

Alat fizikal yang digunakan dalam kegiatan pengeluaran barang dan perkhidmatan .

Contoh loji ialah bangunan pejabat dan kilang-kilang.

FIRMS
Organization or production units that own and use limited factor of production to produce various types of
goods and services.
FIRMA

Organisasi atau unit pengeluaran yang memiliki dan menggunakan faktor-faktor pengeluaran yang
terhad untuk menghasilkan pelbagai jenis barang dan perkhidmatan.

INDUSTRIES

Industries consist of a number of firms that operate in the same market and produce the same types of
goods
INDUSTRI

Industri terdiri daripada sejumlah firma yang beroperasi dalam sesuatu pasaran dan mengeluarkan
output yang sama
TIME PERIODS
1.
i.

ii.
iii.
2.
3.
4.

Time periods refer to the duration of production and can be differentiated into three type:
Market (current) period or very short run
Short run
Long run
The market (current) period or very short run is very short time period in which a firm is not able to
increase production.
The short run is a time period in which there is at least one fixed input and one variable input can change
the stage of production. Each firm are different short run period.
The long run is a time period in which all in inputs in the production process are variable according to the
characteristics of the firm, and production is more efficient.

JANGKA MASA
1.

Jangka masa merujuk kepada tempoh sesuatu pengeluaran dan boleh dibezakan kepada tiga
jenis seperti berikut :

i.

Jangka masa pasaran (semasa) atau jangka masa singkat

ii.

Jangka masa pendek

iii.

Jangka masa panjang

2.

Jangka masa pasaran atau jangka masa singkat ialah jangka masa yang sangat pendek
sehingga sesebuah firma tidak dapat menambahkan keluarannya.

3.

Jangka masa pendek ialah jangka masa di mana terdapat sekurang- kurangnya satu input
tetap dan satu input berubah dalam proses pengeluaran. Tingkat keluaran boleh diubah dengan
menukar input berubah sahaja. Setiap firma mempunyai jangka masa pendek yang berlainan.

4.

Jangka masa panjang ialah satu jangka masa apabila semua input pengeluaran boleh berubah
mengikut sifat firma itu sendiri dan pengeluaran yang dijalankan adalah lebih efisien.

PRODUCTION CONCEPTS: TOTAL PRODUCTION,AVERAGE

PRODUCTION AND MAGINAL PRODUCTION
KONSEP PENGELUARAN : JUMLAH KELUARAN,KELUARAN PURATA DAN KELUARAN SUT

Total Production (TP):

Total production is defined as the production quantity produced at a certain level

of variable inputs.
Total production = Average production Total variable input
Or
TP=AP TL

Jumlah Keluaran (TP)

Keluaran ditakrifkan sebagai kuantiti keluaran yang dihasilkan pada tingkat input berubah
tertentu.
Jumlah keluaran = Keluaran purata x Jumlah input berubah
Atau
TP = AP X TL

Total production = average production total variable input

Jumlah keluaran = Keluaran purata x Jumlah input berubah

Total production, average production, and marginal

production
Jumlah TOTAL
Keluaran,
Keluaran
LABOUR QUANTITY
PRODUCTION
(UNITS)
(UNITS)
TL
TP

Purata,
dan Keluaran MARGINAL
Sut
AVERAGE
PRODUCTION
(UNITS)
AP

PRODUCTION
(UNITS)
MP

30

30

30

65

32.5

35

103

34.3

38

131

32.75

28

147

29.4

16

155

25.8

155

22.1

Average Production (AP) :

Average production (AP) is the ratio of total production to total variable

inputs (labour) used to produce a product.

The formula to calculate average production is:

Average production = Total production/ Total variable input
Or
AP = TP/TL

Keluaran Purata (AP) :

Keluaran puarata (AP) ditakrifkan sebagai nisbah antara jumlah keluaran dengan jumlah
input berubah (buruh) yang digunakan utuk mengeluarkan jumlah keluaran tersebut.

Formula untuk mengira keluaran purata adalah seperti berikut:

Keluaran purata = Jumlah keluaran/ Jumlah input berubah
Atau
AP = TP/TL

Marginal Production (MP) :

Marginal production (MP) is defined as the change in total production when variable

inputs are increased in increments of one unit.

The formula to calculate marginal production is:

Marginal production = Change in total production/Change in total variable inputs

Or

MP =

TP/

TL

Keluaran Sut (MP) :

Keluaran sut atau keluaran marginal (MP) ditakrifkan sebagai perubahan jumlah keluaran

apabila input berubah ditambah sebanyak satu unit.

Formula untuk mengira keluaran sut ialah:
Keluaran marginal = Perubahan jumlah keluaran/ Perubahan jumlah input berubah
Atau
MP = TP/ TL

Short Run Production Function With One Variable Input

Fungsi Pengeluaran Jangka Pendek dengan Satu Input Berubah

A production function shows the combination of factors of production needed to

produce a quantity of product or output at a certain level of technology.

A production function shows the maximum output quantity that can be produced with

the minimum input quantity.

A production function can be expressed as:

Q = f ( Ln, Lb, C, E )

Fungsi pengeluaran menunjukkan gabungan faktor pengeluaran yang diperlukan untuk

mengeluarkan kuantiti sesuatu keluaran atau output pada tingkat teknologi tertentu.
Fungsi pengeluaran menunjukkan kuantiti output maksimum yang boleh dikeluarkan
dengan menggunakan kuantiti input ruang minimum.
Fungsi pengeluaran boleh dinyatakan seperti berikut:
Q = f ( T, B, M, U) dimana

With the assumption that production technology is constant, the law of diminishing

returns states that a continuous increment of variable input to fixed will cause production
to rise at an increasing rate initially, then at a slower increasing rate, and finally a negative
rate.

LAW OF INCREASING, DECREASING, AND

DIMINISHING MARGINAL RETURNS
HUKUM PULANGAN MARGINAL BERTAMBAH, BERKURANGAN DAN NEGATIF

Dengan andaian teknologi pengeluaran adalah tetap,hukum pulangan berkurangan

menyatakan penambahan input berubah secara berterusan ke atas input tetap akan
menyebabkan penambahan jumlah keluaran dengan kadar yang semakin meningkat pada
mulanya, kemudian bertambah dengan kadar yang semakin berkurangan dan akhirnya menjadi
negatif.

Table 5.2 Relationship between quantity of labour,total production,average

production,marginal production,and the law of marginal returns.
Jadual 5.2 Hubungan antara kuantiti buruh, jumlah keluaran, keluaran purata, keluaran marginal dan hukum
pulangan
Quantity
of labour
(units)

Total
production
(TP )(units)

Average
production
(AP )(units)

Kuantiti
buruh (unit)

Jumlah
keluaran

Keluaran
purata

Marginal
production
(MP)
(units)
Keluaran
marginal

Law of
marginal
returns
Hukum
pulangan
marginal

Stage of
production
Tahap
pengeluaran

11

11.0

11

Increasing

25

12.5

14

Bertambah

Tahap 1

37

12.3

12

46

11.5

51

10.2

Daminishing

Stage 2

55

9.2

Berkurangan

Tahap 2

55

7.9

54

6.8

-1

51

5.7

-3

Negative

10

46

4.6

-5

Negatif

Stage 1

Stage 3
Tahap 3

Q = Total output/production
Ln = Land
Lb = Labour
C = Capital
E = Entrepreneurship
Q = Jumlah output/ keluaran
T = Tanah
B = Buruh
M = Modal
U = Usahawan

Production Cost Theory

Teori Kos Pengeluaran

Production cost can be divided into two main categories

a) Explicit Costs
Explicit Costs or visible costs are real costs paid by the firm for production inputs such as wages,
costs of raw materials, transportation costs, and fuel costs. Explicit costs are all payments made
to non-owners of the production unit.
b) Implicit Costs
Implicit Costs or hidden costs are all payments made to the firm, for example, rent for land and
buildings owned by the firm.

Kos pengeluaran dapat dibahagikan kepada dua ketegori kumpulan kos yang utama seperti
berikut:
a) Kos Eksplisit
Kos Eksplisit atau kos nyata (nampak) ialah perbelanjaan tunai sebenar yang dibayar oleh unit
pengeluaran untuk membeli input pengeluaran seperti upah pekerja, kos bahan mentah, kos
pengangkutan, dan kos bahan api. Kos eksplisit ialah segala pembayaran yang dibuat kapada
bukan pemilik unit pengeluaran.
b) Kos Implisit
Kos Implisit atau kos tersembunyi (tidak nampak) ialah segala perbelanjaan wang yang dibayar
kepada pengusaha sendiri, misalnya sewa tanah dan bangunan yang dimiliki firma sendiri.

Production costs
Kos Pengeluaran
Total Fixed Cost (TFC)
a)Total Fixed Cost is the total cost paid to acquire fixed inputs such as
machinery and building.
b)Fixed cost do not change with the different stages of production

Jumlah Kos Tetap (TFC)

a)Jumlah Kos Tetap (TFC) ialah jumlah kos yang dibayar untuk memperoleh input
tetap seperti mesin dan bangunan.
b)Kos tetap tidak berubah mengikut perubahan tingkat pengeluaran. Kos ini tetap
ditanggung oleh firma walaupun tingkat keluaran adalah kosong dalam jangka masa
pendek.

Concepts of Production Cost

Konsep-Konsep Kos dalam Pengeluaran
Total
Output
(Q) (unit)
Jumlah
output
(Q) (unit)

Total
Cost
(TC)
(RM)
Jumlah
Kos
(TC)

Total
Fixed
Cost
(TFC)
(RM)
Jumlah
Kos
Tetap
(TFC)
(RM)

Total
Variable
(TVC)
(RM)
Jumlah
Kos
Berubah
(TVC)
(RM)

Average
Variable
Cost (AVC)
(RM)
Kos
Berubah
Purata
(AVC)
(RM)

Average
Fixed Cost
(AFC) (RM)
Kos Tetap
Purata
(AFC)
(RM)

Average
Cosy (AC)
(RM)
Kos Purata
(AC)
(RM)

Marginal
Cost (RM)
Kos Marginal
(AC)
(RM)

600

600

10

1050

600

450

45.0

60.0

105.0

45

20

1450

600

850

42.5

30.0

72.5

40

30

1800

600

1200

40.0

20.0

60.0

35

40

2100

600

1500

37.5

15.0

52.5

30

50

2450

600

1850

37.0

12.0

49.0

35

60

2850

600

2250

37.5

10.0

47.5

40

70

3300

600

2700

38.6

8.6

47.1

45

80

3850

600

3250

40.6

7.5

48.1

55

The formula to calculate total fixed cost is:

Total fixed cost (TFC)=Total cost (TC)- Total variable cost (TVC)
Or
Total fixed cost (TFC)= Average fixed cost (AFC) x Output (Q)
From the table 5.3, at a production stage of 50 units, total fixed cost can be
calculated as:
TFC =TC-TVC
TFC =AFC x Q
=2450-1850 or
=12x50
=RM 600
=RM600
Formula untuk mengira jumlah kos tetap adalah seperti berikut:
Jumlah Kos Tetap(TFC)=Jumlah Kos(TC)-Jumlah Kos Berubah
Atau
Jumlah Kos Berubah(TFC)=Kos Tetap Purata (AFC) x Output(Q)
Berdasarkan Jadual 5.3, pada tingkat keluaran 50 unit, jumlah kos tetap boleh dikira
sepaerti berikut:
TFC=TC-TVC
=2450-1850
=RM600

Atau

TFC =AFC X Q
=12 X 50
=RM600

Cost (RM)
Kos (RM)

600

TFC
Output (units)

Output (unit)

Figure 5.3 Total fixed cost curve

Rajah 5.3 Keluk jumlah kos tetap
The total fixed cost curve is horizontal, as shown in Figure 5.3, because these costs are fixed at all
stages of short run production.
Keluk jumlah kos tetap berbentuk mendatar , seperti ditunjukkan pada Rajah 5.3, kerana kos ini adalah tetap
pada semua tingkat keluaran dalam jangka masa pendek.

Total Variable Cost (TVC) :Total variable cost (TVC) is the total cost paid to acquire
variable inputs such as raw materials and labour
Cost (RM) / Kos (RM)

TVC

1200

Output (units)
0

30

Output (unit

The formula to calculate total variable costs is:

Total variable cost (TVC)=Total cost (TC) Total fixed cost (TFC)
Or
Total variable cost (TVC)=Average variable cost (AVC) Output (Q)
TVC=TC TFC
=2450-600
=RM1850

TVC=AVC Q
OR
=37 50
=RM1850

Jumlah Kos Berubah (TVC)

Jumlah kos berubah (TVC) ialah jumlah kos yang dibayar untuk menperoleh input berubah seperti bahan
mentah dan buruh.
Formula untuk mengira jumlah kos berubah adalah seperti berikut:
Jumlah Kos Berubah (TVC) = Jumlah Kos (TC) Jumlah Kos Tetap (TFC)
Atau
Jumlah Kos Berubah (TVC) =Kos Berubah Purata (AVC) x Output (Q)
TVC=TC TFC
TVC=AVC x Q
=2450-600
=37 x 50
=RM1850
=RM1850

Total Cost (TC)

Total cost (TC) is the overall cost paid to acquire fixed inputs and variable
inputs.
The formula to calculate total cost is as follows:
Total cost (TC) = Total fixed cost (TFC) + Total variable cost (TVC)
Or
Total cost (TC) = Average cost (AC) x Output (Q)
From Table 5.3 at production stage of 50 units ,calculated as:
TC= TFC +TVC
TC=ACQ
=600+1850 OR
=4950
=RM2450
=RM2450
Jumlah kos (TC)
Kos keseluruhan yang dibayar bagi memperoleh input tetap dan input berubah
Formula untuk mengira jumlah kos adalah seperti berikut:
Jumlah kos (TC) = Jumlah kos tetap (TFC) + Jumlah kos berubah (TVC)
Atau
Jumlah kos (TC) = Kos purata (AC) x Output (Q)
Pada jadual 5.3 tingkat pengeluaran ialah 50 units,pengiraan seperti:
TC=TFC+TVC
Atau
TC=ACxQ
=600+1850
=49x50
=RM2450
=RM2450

Cost (RM)
Kos (RM)

TC
1800

TVC
TFC

600

Output (units)
Output (unit)

30

Figure
. 5.5 Total cost curve
Rajah 5.5 Keluk jumlah kos

Average Fixed Cost (AFC):

Average
fixed. cost (AFC)/Output (Q)
Fixed cost per unit of
production
The formula to calculate average fixed costOr
is:
Average fixed cost (AFC) = Average cost (AC)-Average variable cost (AVC)
Or
Average fixed cost (AFC)=Average cost (AC)-Average variable cost (AVC)
AFC=TFC/Q
AFC=AC-AVC
= 600/50 or
=49-37
= RM12
=RM12

Kos tetap purata

Nilai kos tetap bagi seunit keluaran.

Formula untuk mengira kos tetap purata adalah seperti berikut:

Kos Tetap Purata (AFC)/Output(Q)
Atau
Kos Tetap Purata(AFC)=Kos Purata (AC) Kos Berubah Purata (AVC)
Atau
Kos tetap Puraata(AFC)=8Kos Purata Kos Berubah Purata(AVC)
AFC=TFC/Q
AFC=AC-AVC
=600/50
Atau
=49-37
=RM12
=RM12

Cost (RM)
Kos (RM)

20
AFC
Output(unit)
30

Output (unit)

Figure 5.6 Average fixed cost curve

Rajah 5.6 Keluk kos tetap purata

Average variable cost (AVC) is the variable cost per unit of production.
AVERAGE VARIABLE COST
Kos berubah purata (AVC) ialah nilai kos berubah bagi seunit keluaran.

Kos Berubah Purata

The formula to calculate average cost is:

Average variable cost (AVC)=Total variable cost (TVC)/Output (Q)
Or
Average variable cost (AVC)=Average cost (AC)- Average fixed cost (AFC)
AVC=TVC/Q
=1850/50 or
=RM37

AVC=AC-AFC
=49-12
=RM37

Cost (RM)
Kos (RM)

AVC

37
0

Output (units)
Output (unit)

50

Figure 5.7 Average variable cost curve

Rajah 5.7 Keluk kos berubah purata

Formula untuk mengira kos berubah purata adalah seperti berikut:

Kos Berubah Purata (AVC) =Jumlah Kos Berubah(TVC)/Output(Q)
Atau
Kos Berubah Purata (AVC) =Kos Purata (AC) Kos Tetap Purata(AFC)
AVC =TVC/Q
=1850/50
=RM37

AVC=AC-AFC
Atau
=49-12
=RM37

Average Cost (AC):

Average cost is total cost per unit of production
Average cost is the combination of average variable cost and average fixed
cost
The formula to calculate average cost is a follows:
Average cost (AC) = Total cost ( TC) / Output (Q)
Or
Average cost (AC) = Average fixed cost (AFC) + Average variable cost (AVC)

Kos Purata (AC):

Kos Purata ialah jumlah kos bagi seunit keluaran.
Kos Purata merupakan gabungan kos berubah purata dan kos tetap purata.
Formula untuk mengira kos purata adalah seperti berikut:
Kos Purata(AC)=Jumlah Kos(TC)-Output(Q)
Atau
Kos Purata=Kos Tetap Purata(AFC)+Kos Berubah Purata(AVC)

AC = TC/Q
= 2450/50
=RM49

Or

AVC = AFC + AVC

=12+ 37
=RM49

Cost(RM)
Kos (RM)

B
47.1
Output (units)
0

70

Output (unit)

Marginal Cost (MC) :

Marginal cost is the increased production cost required for each additional unit of
production
Marginal cost (MC)=Change in total cost (ATC)/ change in output (AQ)
Or
Marginal cost (MC)=change in total variable cost (ATVC)/ change in output (AQ)
Kos Marginal/ Kos Sut (MC):
Kos marginal atau kos sut ialah tambahan nilai kos pengeluaran yang dibelanjakan untuk menambahkan
satu unit pengeluaran.
Kos Marginal(MC)=Perubahan jumlah kos(ATC)/Perubahan Output(AQ)
Atau
Kos Marginal (MC)=Perbahan jumlah kos berubah(ATVC)/Perubahan Output(AQ)

Marginal Cost (MC) :

Marginal cost is the increased production cost required for each additional
unit of production.
The formula to calculate marginal cost is:
Marginal cost (MC)=Change in total cost (ATC)/ change in output (AQ)
Or
Marginal cost (MC)=change in total variable cost (ATVC)/ change in output (AQ)

Kos Marginal/ Kos Sut (MC):

Kos marginal atau kos sut ialah tambahan nilai kos pengeluaran yang dibelanjakan untuk
menambahkan satu unit pengeluaran.
Formula untuk mengira kos marginal adalah seperti berikut:
Kos Marginal(MC)=Perubahan jumlah kos(ATC)/Perubahan Output(AQ)
Atau
Kos Marginal (MC)=Perbahan jumlah kos berubah(TVC)/Perubahan Output(AQ)

MC = ATC/ AQ
=(2450 2100)( 50 -40 )
=3510/10
=RM35

MC = ATC/AQ
=(1850 -1500)(50 -40)
=350/10
RM35

Or

Cost (RM)
Harga (RM)

MC

55

Output (units)

0
80

Output (unit)

RELATIONSHIP BETWEEN AC AND MC WITH AVERAGE PRODUCTION AND

Average production
MARGINAL PRODUCTION
Keluaran purata
A
Hubungan antara kos purata dan kos sut dengan keluaran
dan kos sut

B
AP
MP
0
Cost (RM) Kos(RM)

Q1 Q2

Variable inputs (units)

Input tetap (unit)

MC
AC

Q1

Q2

Variable inputs (units)

Input tetap (unit)

The relationship between average cost and marginal cost (AC and MC) with average production and
marginal production (AP and MP) is shown in Figure 5.10.

1.

When the AP curve rises until a maximum point (point B) is reached, the AC curve will fall until a
minimum point is reached (point D). When the AP curve falls, the AC curve will rise.

2.

When the MP curve rises until a maximum point is reached (point A), the MC curve will fall until a
minimum point is reached (point C). When the MP curve falls, the MC curve will rise.

Hubungan antara kos purata dan kos sut (AC dan MC) dengan keluaran purata dan keluaran sut (AP dan
MP) ditunjukkan pada Rajah 5.10.

1.

Apabila keluk AP manaik sehingga mencapai titik maksimum (titik B), keluk AC akan menurun sehingga
mencapai titik minimum (titik D). Apabila keluk AP menurun, keluk AC akan menaik.

2.

Apabila keluk MP menaik sehingga mencapai titik maksimum (titik A), keluk MC akan menurun sehingga
mencapai titik minimum (titik C). Apabila keluk MP menurun, keluk MC akan menaik.

SHORT RUN PRODUCTION COST

Kos Pengeluaran Dalam Jangka Masa Pendek
1. In a production process, firm need two type of inputs, i.e. fixed inputs such as land, building, and
machinery and variable inputs such raw materials and labour.
2. In the short run, a firm can only change the quantities of certain factory of production ,while the
quantities of the other factors are fixed.
3. The shape of short run cost curve shows in figure 5.11.
(a) The AVC curve AC curve become closer because fixed costs are reduced when production
increases.

1.

Dalam sesuatu proses pengeluaran, firma memerlukan dua jenis input, iaitu input tetap seperti tanah,
bangunan kilang dan jentera, dan input berubah seperti bahan mentah dan buruh.

2.

Dalam jangka masa pendek, sesebuah firma hanya boleh megubah kuantiti sesetengah faktor
pengeluaran sahaja manakala kuantiti beberapa faktor lain adalah tetap.

3.

Bentuk keluk kos dalam jangka masa pendek ditunjukkan pada Rajah 5.11.

a)

Keluk kos berubah purata (AVC) dan keluk kos purata (AC) menjadi semakin hampir kerana kos tetap
semakin berkurangan apabila keluaran semakin bertambah.

(b) The vertical difference between the AC curve and the AVC curve at each level of
production shows the average fixed cost (AFC).
(C) When output level are greater than OQ, MC> AVC curve is rising. When the output
level is greater than OQ1,MC > AC and AC curve rising. The Mc curve intersect the AC
curve and the AC curve from below at the minimum point of each curve, i.e. at point K
and point L.
(d) when the MC curve is above the AVC curve, and the AC curve , the AVC curve and
the AC curve are rising. However, when the MC curve is below the AVC curve and the
AC curve, the AVC curve and the AC curve is falling.
a) Perbezaan menegak antara keluk AC dengan keluk AVC pada tingkat keluaran tertentu
menunjukkan kos tatap purata (AFC).
b) Pada tingkat output melebihi OQ1, MC > AVC dan keluk AVC sedang menaik. Pada
tingkat output melebihi OQ1, MC > AC dan keluk AC sedang menaik. Keluk MC memotong
keluk AVC dan keluk AC dari bawah pada titik minimum masing-masing, iaitu pada titik K
dan titik L
c) Apabila keluk MC berada di atas keluk AVC dan keluk AC berda di bawah keluk AVC dan
keluk AC, keluk AVCdan keluk AC menurun.Walaubagaimanapun,apabila keluk MC
dibawah keluk AVC dan keluk AC,keluk AVC dan keluk AC jatuh.

Relations between MC and AVC

1.

The AVC curve always slopes downwards from left to right when MC is smaller than
AVC or when the MC curve is above the AVC curve.

2.

The AVC curve will slopes upwards from left to right when MC is greater than AVC or
when the MC curve is above the AVC curve.

3.

The MC curve intersects the AVC curve at its minimum point. At this point (point K),
MC=AVC

Hubungan antara MC dengan AVC

1.

Keluk AVC sentiasa mencerun ke bawah dari kiri ke kanan selagi MC lebih kecil daripada AVC atau
keluk MC berada di bawah keluk AVC.

2.

Keluk AVC akan mencerun ke atas dari kiri ke kanan apabila MC lebih besar daripada AVC atau apabila
keluk MC berada di atas keluk AVC.

3.

Keluk MC memotong keluk AVC pada titik minimum. Pada titik ini (titik K), MC =AVC.

RELATIONSHIP BETWEEN MC AND AC

1.The AC curve slopes downwards from left to right when MC is smaller than AC, or
when the MC is below the AC curve.
2. The AC curve slopes upwards from left to right when MC is greater than AC, or
when the MC curve above the AC curve.
3. The MC curve intersects the AC curve at its minimum point. At this point (point L),
AC = MC. Because AC is an indicator of production efficiency, The minimum point in
the AC curve indicates the most efficient stage of production.
Hubungan antara MC dengan AC
1.

Keluk AC mencerun ke bawah dari kiri ke kanan selagi MC lebih kecil daripada AC
atau keluk MC berada di bawah keluk AC.

2.

Keluk AC mencerun ke atas dari kiri ke kanan selagi MC lebih besar daripada AC
atau apabila keluk MC berada di atas keluk AC.

3.

Keluk MC memotong keluk AC pad titik minimum. Pada tititk ini (titik L), AC = MC.
Oleh sebab AC menunjukkan tingkat pengeluaran yang paling cekap

4.

The curve AVC and the curve AC curve will become closer together due to

decreasing fixed cost when production increases.

5.

The vertical difference between the AC and curve and the AVC curve at the

certain level of production indicates the average fixed cost. The difference is
greater at low level of production because the AC are high. However, the
difference is smaller at large levels of production because the AFCs are low.
4.

Keluk AVC dan keluk AC akan menjadi semakin hampir disebabkan kos tetap

yang semakin berkurangan apabila keluaran semakin bertambah.

5.

Perbezaan menegak antara keluk AC denagn keluk AVC pada tingkat keluaran

tertentu bersamaan kos tetap purata. Perbezaan tersebut adalah besar pada tingkat
keluaran yang kecil kerana kos tetap purata adalah tinggi. Sebaliknya, perbezaannya
adalah kecil pada tingkat keluaran yang tinggi kerana kos tetap purata adalah rendah

Relationship between AC, AVC and MC

1. The AC,AVC, and MC curve are U-shaped. This shapes illustrates the influence of the
law of decreasing return on firm s production activities, i.e. increased production will
cause the cost per unit of production to decrease until a certain level, after which
increased production will cause the cost per unit to increase again.
2. When the MC curve below the AVC curve and the AC curve, both the AVC and the AC
curve are falling.

Hubungan antara AC, AVC dan MC

1.

Keluk AC,VC dan MC berbentuk U. Bentuk keluk ini menggambarkan kegiatan pengeluaran
sesebuah firma yang dipengaruhi hukum pulangan berkurangan, iaitu tambahankeluaran
menyebabkan kos seunit berkurangan sehingga satu tahap tertentu dan selepas itu, tambahan
keluaran akan menyebabkan kos seunit meningkat semula.

2.

Semasa keluk MC berada di bawah keluk AVC dan keluk AC, kedua-dua keluk AVC dan keluk AC
sedang menurun.

3.When the MC curve is above the AVC curve and the AC curve, both the AVC
and the AC are rising.
4.The MC curve will intersect the AVC and the AC curve at their minimum points.
5.After the MC curve intersects the AVC curve, the MC will rise at an increasing
rate.

1.Apabila keluk MC berada di atas keluk AVC dan keluk AC, kedua-dua keluk AVC dan keluk AC
sedang menaik.
2.Keluk MC akan memotong keluk AVC dan keluk AC pada titik minimum keluk-keluk tersebut.
3.Selepas keluk MC memotong keluk AVC, keluk MC akan menaik dengan kadar yang lebih cepat

LONG RUN PRODUCTION COST

Kos Pengeluaran Dalam Jangka Masa Panjang
1.In the long run, all input become variable inputs. Therefore, all costs become variable
costs.
2.In the long run, there is no difference between fixed inputs and variable inputs. Thus,in
the long run, all factors are variable such as land, building, machinery, office
equipment, capital, and labour.

1.

Dalam jangka masa panjang, semua input merupakan input berubah. Oleh itu, semua kos merupakan kos
berubah.

2.

Dalam jangka masa panjang, tidak wujud perbezaan antara input tetap dengan input berubah. Ini
bermakna dalam jangka masa panjang, semua faktor akan berubah seperti tanah, bangunan, mesin,
peralatan pejabat, modal dan buruh.

3.A firms production can be planned in the long run, but all production processes
are carried out in the short run. In the long run, a firm can change the scale of
production or the factory size correspondingly with the demand for the output of
the firm, and will select a factory size for a minimum cost to increase total
production.
4.The long run average cost (LAC) curve consists of a run average cost section
that indicates the cost at minimum production at different level of output, I . e when
all input are variable inputs.
1.Dalam jangka masa panjang, perancangan pengeluaran sesebuah firma dapat dilakukan tetapi
semua proses pengeluaran akan dijalankan dalam jangka jangka masa pendek. Dalam jangka masa
panjang, firma boleh mengubah-ubah skel pengeluaran atau saiz kilang sesuai dengan aliran
permintaan keluaran firmanya, dia akan memilih saiz kilang yang mempunyai kos minimum bagi
menambahkan jumlah keluarannya.
2.Keluk kandung atau keluk kos purata jangka panjang (LAC) terdiri daripada bahagian keluk kos
purata jangka pendek yang menunjukkan kos pengeluaran minimum pada pelbagai tingkat output
yang dihasilkan, iaitu apabila semua input yang digunakan ialah input berubah sahaja.

5.The shape of the long run average cost (LAC) curve is show in figure 5.12.
(a)In the long run, because there are no fixed factors, the firm is able to adjust the
size of the plant according to market demand. Thus, in the long run, firm can plan
the size that will minimize production costs.
(b) It is assumed there are four plant sizes, represented by SAC1,SAC2,SAC3, and
SAC4.A producer will select plant size SAC1 to produce an output of Q1 at point
b, and not at point a using plant SAC2.

5.

Bentuk keluk kos purata jangka panjang (LAC) ditunjukkan pada Rajah 5.12.

a)

Dalam jangka masa panjang sebab tiada faktor , firma berupaya menyesuaikan saiz loginya
mengikut kehendak pasaran. Ini bermakna dalam jangka masa panjang, firma boleh membuat
perancangan tentang saiz loji yang dapat meminimumkan kos pengeluarannya.

b)

Diandaikan terdapat empat saiz loji yang diwakili oleh SAC 1, SAC2, SAC3 , SAC4 . Pengeluar akan
memilih saiz loji SAC1 untuk megeluarkan output sebanyak Q 1 pada tititk b dan bukan pada titik a
di loji SAC 2.

(c) A firm can choose either plant SAC1 or SAC2 to produce an output of Q2,
because both these plant are able to produce output of Q2 at the same cost per
unit, i. e the SAC1 curve intersect the SAC2 curve at point c with an output level
of Q2.
(d) If a firm wishes to produce an output of Q3, plant size SAC2 will be
selected because the production cost per unit of Q3e compared to plant SAC1
which has a production cost per unit of Q3d.At the output level Q4 ,the producer
can select either SAC2 or SAC3, because both these plants have the same
average cost of Q4f
a)Firma boleh memilih saiz loji SAC1 atau SAC2 untuk mengeluarkan output sebanyak Q2
kerana kedua-dua saiz ini memberi kos seunit yang sama, iaitu keluk SAC1 bersilang dengan
keluk SAC2 pada titik c dengan tingkat output sebanyak Q2.
b)Jika firma ingin menghasilkan output sebanyak Q3, saiz loji SAC2 akan dipilh kerana ia dapat
memberi kos seunit yang paling rendah sebanyak Q3e berbanding saiz loji SAC1 yang
melibatkan kos sebanyak Q3d. Pada tingkat output Q4,pengeluar boleh memilih sama ada saiz
loji SAC2 atau SAC3 kerana kedua-duanya memberikan kos purata yang sama,iaitu sebanyak
Q4f.

e) A producer will select plant size SAC3 to produce an output of Q5 at point g.

A produce will not choose plant size SAC2 to produce an output of Q5 at point
h or plant size SAC4 to produce an output of Q5 at point i, due to the greater
average costs for both these plants.

a)Pengeluar akan memilih saiz loji SAC3 untuk mengeluarkan output

sebanyak Q5 pada titik g. Pengeluar tidak akan memilih saiz loji SAC2 untuk
mengeluarkan output sebanyak Q5 pada titik h atau memilih saiz loji SAC4
untuk mengeluarkan output sebanyak Q5 pada titik i kerana kos purata yang
dilibatkan oleh kedua-dua saiz loji ini adalah lebih tinggi.

(f) A firm can choose plant size SAC3 or SAC4 to produce an output of Q6, because both
these plants have the same production cost per unit, i.e the SAC3 curve intersects the
SAC4 curve at point j with an output level of Q6.
(g) If a firm wishes to produce an output of Q7, plant size SAC4 will be selected because
this plant has the lowest production cost per unit or Q7k.
(h) If the lowest points of average cost for the four plant size, i. e points b, e, g and k are
connected , a curve will be formed. This curve represents the long run average cost
(LAC) curve

f.

Firma boleh memilih saiz loji SAC 3 atau SAC4 untuk mengeluarkan output sebanyak Q 6 kerana kedua-dua
saiz loji ini memberi kos seunit yang sama, iaitu keluk SAC 3 bersilang dengan keluk SAC4 pada tittik j
dengan tingkat output sebanyak Q 6.

g.

Jika firma ingin menghasilkan output sebanyak Q 7 , saiz loji SAC4 akan dipilih kerana saiz loji ini dapat
memberi kos seunit yang paling rendah iaitu sebanyak Q 7k.

h.

Jika titik kos purata terendah di empat saiz loji tersebut, iaitu titik b, e, g dan k disambungkan, satu garis
melengkung akan terbentuk. Garis melengkung ini merupakan keluk kos purata jangka panjang (LAC).

(i) In reality, a firm may have many size of plants. This means that at each stage
of production, a firm will have a plant that has a different lowest production
costs per unit. The LAC curve is formed from the lowest points of the short run
average cost at different levels of production when there is a change in the
production scale of a firm. The LAC curve is used to plan the production stage
of a firm. The LAC curve and the SAC curve have similar U shapes. The SAC
curve is U-shaped due to the low of returns, while the LAC curve is U-shaped
due to effects of economies of scale and diseconomies of scale
i. Dalam keadaan sebenar, firma mempunyai banyak saiz loji. Ini bermakna pada setiap tingkat
output tertentu, firma mempunyai satu saiz loji yang memberi tingkat kos seunit terendah yang
berbeza. Keluk kos purata yang jangka panjang (LAC) terbentuk daripada gabungan titik kos
purata jangka pendek yang terendah pada tingkat keluaran apabila berlaku perubahan dalam
skala pengeluaran firma. Keluk LAC merupakan keluk yang merancang tingkat pengeluaran bagi
sesebuah firma. Keluk LAC dan keluk SAC mempunyai bentuk yang serupa, iaitu berbentuk U.
Keluk SAC mempunyai benbentuk U disebabkan hukum pulangan manakala keluk LAC
berbentuk U disebabkan oleh kesan ekonomi bidangan dan disekonomi bidangan .

OPTIMUM LEVEL OF PRODUCTION

Tingkat Pengeluaran Optimum
1.

Marginal costs play an important role in the production process of a firm in order to
maximise profits.

2.

If the marginal cost of a firm are smaller than its increase in sales, the firm will
obtain a profit when one additional unit of output is produced. If the marginal costs
are greater than the increase in sales, the firm will suffer a loss when one additional
unit of output is produced.

3.

The marginal cost curve can be explained from figure 5.13.

1.

Kos sut (MC)memainkan peranan penting dalam proses pengeluaran sesebuah firma yang brtujuan
memaksimumkan keuntungan

2.

Sekiranya kos sut sesebuah firma adalah lebih kecil daripada tambahan jualan firma,firma akan
mendapat keuntungan apabila satu unit tambahan output dikeluarkan. Sekiranya kos sut sesebuah
firma adalah lebih besar daripada jualan firma, maka firma akan mengalami kerugian apabila satu unit
tambahan output dikeluarkan.

3.

Keluk kos sut atau kos marginal jangka panjang(LMC) hanya wujud dalam jangka masa panjang sahaja
dan pembentukan keluk ini boleh diterangkan berdasarkan Rajah 5.13.

4.

4.When SAC = LAC,SMC= LMC. For example, at the output level of Q2,when the
SMC2 intersetcs the SAC2 curve and the LAC curve at the minimum point, the
LMC curve also intersects the SMC2 curve (SAC = LAC = SMC = LMC).This means
that the total production cost in the long run are equal to the total production
costs in the short run.

4.

Apabila SAC = LAC, SMC = LMC. Misalnya, pada tingkat output Q2 , apabila apabila
keluk SMC2 memotong keluk SAC2, dan keluk LAC pada titik ,minimum, keluk LMC
turut bersilang dengan keluk SMC2 ( SAC = LAC =SMC =LMC). Ini bermakna jumlah
kos pengeluaran dalam jangka masa panjang sama dengan jumlah kos pengeluaran
dalam jangka masa pendek.

Relation between SAC, LAC, SMC and LMC

1.The SMC curve will always intersect the LAC curve at the minimum point.
2.There is only one short run plant that has a minimum point equal to the
minimum point of the long run average cost (LAC) curve. At this point, SMC is
equal to LMC.
3.At minimum point of the LAC curve, SAC=SMC=LMC. Both the LAC and SAC
curve are U-shaped.
4.The LAC curve is U-shaped due to economies and diseconomies of scale.
1.Terdapat hanya satu loji jangka pendek sahaja yang mempunyai titik minimum sama
dengan titik minimum keluk kos purata jangka panjang (LAC). Pada titik ini,SMC adalah
sama dengan LMC.
2.Pada titik minimum keluk LAC, SAC = SMC = LMC. Kedua-dua keluk LAC dan keluk
SAC berbentuk U.
3.Keluk LAC berbentuk U disebabkan oleh ekonomi bidangan dan disekonomi
bidangan.

ECONOMIES AND DISECONOMIES OF SCALE AND THEIR

RELATIONSHIP WITH THE LONG RUN AVERAGE COST CURVE
Ekonomi dan Disekonomi Bidangan dan Hubungannya dengan Keluk
Kos Purata Jangka Panjang
Economies of Scale
1.
Economies of scale refer to the benefits of large-scale production due to the decrease
cost per unit of production and increased efficiency.
2.
Economies of scale are illustrated by the descending part of the LAC curve when the
firm expands in size due to internal and external expansion. This is depicted in Figure
5.14.
3.
Economies of scale will lower a firms average costs when production is increased.
4.
Economies of scale can be divided into two types: internal economies of scale and
external economies of scale.
Ekonomi Bidangan
1.

2.
3.
4.

Ekonomi bidangan atau ekonomi pengeluaran besar-besaran merujuk kepada faedah yang diperoleh
firma disebabkan pengurangan kos seunit keluaran dan peningkatan kecekapan sesebuah firma kesan
pembesaran saiz firma.
Ekonomi bidangan digambarkan oleh bahagian keluk LAC yang menurun apabila saiz firma berkembang
kesan daripada perkembangan dalaman dan luaran firma. Ini dapat ditunjukkan pada Rajah 5.14.
Ekonomi bidangan akan merendahkan kos purata firma apabila keluaran semakin bertambah.
Ekonomi bidangan boleh dibahagikan kepada dua jenis, iaitu ekonomi bidangan dalaman dan ekonomi
bidangan luaran.

Internal Economies of scale

1. Internal economies of refer to the increased efficiency achieved by a firm caused by
expansion from within the firm.

Specialization Economies
1. When a firm practices large-scale production, the firm will be able to implement
division of work and specialization of labour in the production process.
2. When more workers are hired, specialization can be increased correspondingly with
the increase in a plant size. Thus, workers will be able to increase their skills and
efficiency
EKONOMI BIDANGAN DALAMAN
1.

Ekonomi bidangan dalaman merujuk kepada peningkatan kecekapan yang dinikmati sesebuah firma
kesan perkembangan di dalam firma itu sendiri.

2.

Penurunan kos purata jangka panjang disebabkan peningkatan output di dalam firma itu sendiri.

Ekonomi pengkhususan
1.

Apabila firma mengeluarkan output secara besar-besaran, firma dapat mengadakan pembahagian kerja
dan pengkhususan buruh dalam proses pengeluarannya

2.

Apabila ramai pekerja diambil, pengkhususan boleh ditingkatkan bersesuiaan dengan saiz loji yang
berkembang. Maka, pekerja akan dapat meningkatkan kemahiran dengan kecekapan masing-masing
dalam melakukan tugas yang diberikan.

Managerial and Administrative Economies

1.Firm that are expanding are able to manage administrative and managerial task
more efficiently, thus increasing productivity. Increased levels of production will
result in reduced managerial costs per unit of production.
2.Managerial efficiency occur when firms are able to efficiently manage an
increased number of employees and materials in line with the expansion of the
firm.
Ekonomi pengurusan dan pentadbiran
1.Firma yang berkembang mampu mengendalikan tugas pengurusan dan pentadbiran
dengan lebih cekap. Seterusnya, pengeluaran dapat ditingkatkan. Pertambahan tingkat
keluaran dapatmengurangkan kos pengurusan seunit keluaran.
2.Kecekapan pengurusan berlaku apabila firma dapat menguruskan lebih ramai pekerja
dan bahan dengan cekap selaras dengan perkembangan saiz firma.

Financial Economies
1. An expanding firm can obtain bank loans at lower interest rates and enjoy longer
loan periods compared to smaller firm.
2. Also, larger firms are able to accumulate more capital through sale of
shares.Thus, the firm is able to obtain capital at a lower cost.
3. Large firms are able to accumulate more assets and higher capital loans.This
can attract investors to purchase shares or invest in the firm.
Ekonomi Kewangan
1.Firma yang berkembang boleh memperoleh pinjaman bank pada kadar bunga yang
lebih rendah dan menikmati tempoh pinjaman yang lebih panjang berbanding firma kecil.
2.Selain itu, firma besar dapat mengumpul modal yang lebih banyak melalui penjualan
saham. Ini bermakna firma dapat memperoleh modal pada kos yang lebih rendah.
3.Saiz firma yang besar menunjukkan pemilikan harta dan modal pinjaman yang tinggi.
Ini dapat menarik minat pelabur untuk membeli saham atau malabur dalam firma
berkenaan.

Production Input Cost Usage and Reduction Economies

1. Firms can increase efficiency through efficient use of production inputs, for
example, by implementing specialization or by using efficient production
techniques.
2. Specialization can increase workers skill and efficiency, whereas the use of more
efficient production techniques can reduce the wastage. Thus, production can be
increase and production costs can be reduced.
3. Firm that practice large-scale production are able to purchase raw materials in
large quantities or in bulk. Thus, production costs can be reduced.

Ekonomi Penggunaan dan Pengurangan Kos Input Pengeluaran

1.

Firma dapat meningkatkan kecekapan melalui penggunaan input pengeluaran dengan lebih efisien,
misalnya dengan mengamalkan pengkhususan atau menggunakan teknik pengeluaran yang cekap.

2.

Pengkhususan dapat meningkatkan kemahiran dan kecekapan pekerja manakalapenggunaan teknik

pengeluaran yang lebih cekap dapat mengelakkan pembaziran . Maka, daya pengeluaran meningkat
dan kos pengeluaran dapat dikurangkan.

3.

Firma yang menghasilkan output secara besar-besaran boleh membeli bahan mentah dan kuantiti
yang besar atau secara pukal. Ini membolehkan firma menikmati diskaun yang lebih tinggi.
Kesannya, kos pengeluaran dapat dikurangkan

Marketing Economies
1.

When output is produced on a large scale ,advertising costs can be

distributed through the large quantity of production. Thus, the advertising cost
per unit of production can be reduced.
2.

Through effective advertising, firms can corner a large portion of the

market and thus will be able to influence the market price. This will increase the
firms profits.

Ekonomi Pemasaran
1.

Apabila output dikeluarkan secarabesar-besaran, kos pengiklanan dapat

disebarkan kepada kepada kuantiti keluaran yang lebih banyak. Kesannya, kos
pengiklanan seunit keluaran akan berkurangan.
2.

Melalui pengiklanan yang berkesan, firma dapat menguasai sebahagian besar

pasaran dan seterusnya mempunyai kuasa meletak harga yang lebih luas. Kesannya,
keuntungan firma akan meningkat.

Technical Economies
1.

2.

Expanding firm have machinery and tools that are technologically advanced compared to
smaller and outdate machinery used by smaller firms. Large scale production enable
machines to be used at maximum capacity without wastage.
The utilization of modern machinery can increase the rate of production.
Thus, the costs per unit of production is reduced.

Ekonomi Teknikal
1.

Firma yang berkembang mampu menggunakan mesin dan peralatan moden yang mempunyai
banyak kelebihan teknikal berbanding mesin kecil dan lama yang digunakan oleh firma kecil.
Pengeluaran secara besar-besaran membolehkan mesin-mesin digunakan pada kapasiti
maksimum tanpa mengakibatkan pembaziran.

2.

Penggunaan mesin moden dapat mempercepat proses pengeluaran dan meningkatkan daya
pengeluaran firma. Kesannya, kos seunit keluran yang dihasilkan adalah lebih rendah.

Research Economies
1. A firm that practices large-scale production is able to conduct research to
increase he quality of its products.
2. An increase in the quality of a product will help a firm to retain existing
customers and attract new customers. This will increase the firms profits.

Ekonomi Penyelidikan
1. Sebuah firma yang menjalankan pengeluaran secara besar-besaran berupaya
menjalankan penyelidikan untuk memperbaiki mutu dan kualiti barang yang
dikeluarkan.
2. Peningkatan kualiti barang yang dihasilkan dapat membantu firma mengekalkan
pelanggan sedia ada dan menarik lebih ramai pelanggan baru. Ini seterusnya dapat
meningkatkan keuntungan firma

Social Economies
1. Large firms can provided scholarship or donations to society. This will
enhance a firms social image.
2. Also, a firms efforts to provided benefit to employees such as the provision
of rest areas, accommodation, transportation, free medical treatments, and
bonuses will result in hard working, loyal, and productive employees.

Ekonomi Sosial
1.Firma besar dapat memberi biasiswa atau derma kepada masyarakat. Tindakan ini
dapat meningkatkan imej firma dalam masyarakat.
2.Selain itu, usaha firma menyediakan faedah sampingan untuk pekerjanya seperti
membina tempat rehat, tempat kediaman pekerja, perkhidmatan pengangkutan, rawatan
kesihatan secara percuma dan pemberian bonus dapat melahirkan pekerja yang rajin,
setia dan produktif.

External Economies of scale

1.External economies of scale refer to a firms increased efficiency due to
expansion in the whole industry.
2.External economies of scale are the benefits or advantages enjoyed by an
industry as a whole, and not just by one firm.
3.External economies of scale contribute to the higher accumulation of returns
and lower production costs.

EKONOMI BIDANGAN LUARAN

1.

Ekonomi bidangan luaran merujuk kepada peningkatan kecekapan sesebuah firma kesan
perkembangan luaran firma dan perkembangan dalam industri secara keseluruhan.

2.

Ekonomi bidangan luaran merupakan faedah atau kelebihan yang dinikmati sesuatu industri secara
keseluruhan dan bukan oleh satu-satu firma sahaja.

3.

Ekonomi bidangan luaran menyumbang kapada pemerolehan pulangan yang semakin tinggi dan kos
pengeluaran yang semakin rendah.

Location and Centralization Economies

1.when firms that produce the same type of product or different products are
located in the same area, the firms can provided services for each other. For
example, if a bank a tyre factory are located in the same area, the tyre factory can
use the banking facilities provided by the nearby bank.
2.The existence of a chain of services between firms and sources of production
inputs in the same industrial area will enable the firms to enjoy benefits such as
complete infrastructure. This will reduce a firm`s production costs.
Ekonomi Penempatan dan Pemusatan
1. Apabila firma-firma yang menghasilkan keluaran yang sama jenis atau keluaran yang berbeza
ditempatkan di sebuah kawasan perindustrian yang sama, firma-firma dalam industri berkenaan
boleh menyediakan perkhidmatan secara bersama. Contohnya, penempatan bank dan kilang
membuat tayar di sebuah kawasan perindustrian membolehkan kilang tersebut mendapatkan
perkhidmatan perbankan daripada firma yang berhampiran.
2. Kewujudan rangkaian perkhidmatan antara firma dan sumber input pengeluaran di sebuah
kawasan perindustrian yang sama membolehkan firma-firma menikmati kelebihan-kelebihan
seperti kemudahan prasarana yang lengkap dan sempurna. Ini dapat mengurangkan kos
pengeluaran firma.

Integration Economies
1.

There are usually several related industries located in the same industrial area. For
example, in the car industry, there are several related industries such as the tyre, paint,
and car accessory industries.

2. Co-operation between production activities of the related firms will enhance the
operation of the car industry and thus reduce transportation and administrative costs.

Ekonomi Intergasi
1.

Pada kebiasaannya, terdapat beberapa industri ynag berkaitan di sebuah kawasan

perindustrian yang sama. Contohnya, dalam industri kereta, terdapat beberapa industri yang
berkaitan seperti industri tayar, cat dan aksesori kereta.

2.

Kerjasama dan penggabungan aktiviti-aktiviti pengeluaran di kalangan firma berkenaan dapat

dilicinkan perjalanan operasi industri kereta tersebut dan seterusnya mengurangkan kos
pengangkutan dan pentadbiran.

Information Technology economies

1.

2.

The success of research and development activities of firms in an industry

will result in other firms in the same industry being able to also get benefit
from innovations, such as the invention of modern production techniques.
This will increase the production of an industry as a whole and reduce the
cost per unit of production.

Ekonomi Teknologi Maklumat.

1.

2.

Kejayaan aktiviti penyelidikan dan pembangunan firma di dalam industri

membolehkan keputusan di dalam firma lain di industri yang sama mendapat
faedah dari inovasi, seperti rekaan teknik produksi moden.
Ini akan menaikkan produksi sesebuah industri secara keseluruhan dan
mengurangkan kos per unit produksi.

Market Economies
1.The economies progress of a country due to the growth of large firms will
influence the marketing of goods in the country.
2.Increased consumers income will increase demand within the country and
thus increase exports of locally produced goods.

Ekonomi Pasaran
1.Kemajuan ekonomi nagara kesan pertumbuhan firma-firma besar akan
mempengaruhi pasaran barang dalam negara tersebut.
2.Peningkatan pendapatan penduduk akan meningkatkan permintaan dalam negara
dan seterusnya meningkatkan eksport barang keluaran tempatan

Diseconomies of scale
1. Diseconomies of scale refer to firms decreased efficiency and production due to
internal and external expansion.
2. Excessive expansion will result in increased production costs.
3. Diseconomies of scale will increase a firms average costs when production
increases.
4. Diseconomies of scale are shown by the rising section of the LAC curve, or the
section to the right of the minimum point of the LAC curve, as shown in figure 5.14
5. Diseconomies of scale can be divided into internal diseconomies of scale and
external diseconomies of scale.
Disekonomi Bidangan
1.

Disekonomi bidangan merujuk kepada kemerosotan dalm kecekapan dan tingkat keluaran sesebuah
firma kesan perkembangan dalaman dan luaran firma.

2.

Perkembangan firma yang keterlaluan akan mengakibatkan kos pengeluaran meningkat.

3.

Disekonomi bidangan akan meningkatkan kos purata firma apabila keluaran semakin bertambah.

4.

Disekonomi bidangan ditunjukkan oleh bahagian keluk LAC yang menaik atau sebelah kanan titik
minimum keluk LAC seperti ditunjukkan pada Rajah 5.14.

5.

Disekonomi bidangan juga dapat dibahagikan kepada disekonomi bidangan dalaman dan disekonomi
bidangan luaran.

Internal Diseconomies of scale

1.Internal diseconomies of scale refer to a firms decreased efficiency caused
by expansion from within the firm.
2.Diseconomies of scale will cause increased production costs per unit when
production increases.

DISEKONOMI BIDANGAN DALAMAN

1.Disekonomi bidangan dalaman merujuk kepada kemerosotan kecekapan firma
yang disebabkan oleh perkembangan di dalam firma itu sendiri.
2.Disekonomi bidangan dalaman akan menyebabkan kenaikan kos seunit keluaran
apabila keluaran bertambah.

Specialization Diseconomies
1.

Specialization of employees in certain fields will result in several weaknesses, such as a boredom
from doing the same tasks repetitively.

2.

Boredom will cause production to decrease and increase the possibility of mistakes. This will
increased production costs.

Disekonomi Pengkhususan
1.

Pengkhususan pekerja dalam bidang pekerjaan tertentu akan menimbulkan beberapa

kelemahan seperti kebosanan kerana pekerja terpaksa melakukan kerja yang sama secara
berulang-ulang.

2.

Kebosanan akan menyebabkan daya pengeluran menurun dan kesilapan cenderung berlaku.
Ini akan meningkatkan kos pengeluaran firma.

Managerial and Administrative Diseconomies

1. A firm that continues to expand until the production scale becomes too large will
complicate the task of control and co-ordination between departments.
2. An overly large number of workers and number of branches will cause the
employees and activities to become difficult to control. problem of low quality
products, customers complaints about low quality of good and services, and lack
of remedial action will occur.
3. Also,managerial inefficiency may cause bureaucratic red tape or a heavy
workload, resulting in increased average costs.
Disekonomi Pengurusan dan Pentadbiran
1.Sesebuah firma yang terus berkembang sehingga mencapai satu tahap yang terlalu besar akan
menyebabkan tugas pengawalan dan penyelarasan antara jabatan menjadi semakin rumit.
2.Bilangan pekerja yang terlalu ramai dan bilangan cawangan yang terlalu banyak menyebabkan
pekerja dan aktiviti setiap cawangan sukar dikawal. Masalah seperti mutu keluaran yang rendah, dan
ketiadaan tindakan susulan cenderung berlaku.
3.Selain itu, ketidakcekapan pengurusan yang mungkin menyebabkan karenah birokrasi atau beban
tugas yang berlebihan akan menyebabkan kenaikan kos purata firma.

Marketing Diseconomies
1. When a firm continues to expand and production continues to increase
there will be a lack of co-ordination between department in a firm.
2.

Weaknesses in co-ordination between department may threaten the

marketing activities.
Disekonomi Pemasaran
1.

Apabila firma terus berkembang dan tingkat keluaran terus meningkat,

ketidakcekapan penyelarasan antara aktiviti jabatan dalam firma akan berlaku.

2.

Kelemahan penyelarasan antara aktiviti jabatan akan menjejaskan kelicinan

aktiviti pemasaran yang dijalankan.

Technical Diseconomies
1. The continuous use of machinery and tools a factory in the production
process will cause damage and obsolescence. An obsolete or damage machine
must be replaced with a new model to ensure that the production activities are not
interrupted.
2.

Machinery requires high expenditure on maintenance, thus causing increased

average costs if production is done on a continuous basis.

Disekonomi Teknikal
1.

Penggunaan mesin dan peralatan kilang dalam proses pengeluaran secara berterusan
akan menyebabkan kerosakan dan keusangan. Mesin yang lama atau rosak perlu
diganti dengan mesin yang baru untuk memastikan aktiviti pengeluaran tidak tergendala.

2.

Pembelian atau penggantian mesin baru memerlukan perbelanjaan kos

penyelenggaraan yang tinggi dan pertambahn keluaran firma secara berterusan akan
menyebabkan kenaikan kos purata

Production Input Usage Diseconomies

1.Production input usage diseconomies will increase the price of production
inputs, Thus, production costs will increase.
2.This situation will occur when many firms compete for raw materials and other
variable inputs to increase their own production capacity.

Disekonomi Penggunaan Input Pengeluaran

1.Disekonomi penggunaan input pengeluaran akan mengakibatkan kenaikan harga input
pengeluaran . Kesannya, kos pengeluaran firma meningkat.
2.Keadaan ini berlaku apabila banyak firma bersaing antara satu sama lain untuk
mendapatkan bahan mentah dan input berubah yang lain bagi meningkatkan kapasiti
pengeluaran masing-masing.

External Diseconomies of scale

External diseconomies of scale refer to a firms decline in efficiency caused by expansion external to
the firm or industry, resulting in increased production costs within the industry

DISEKONOMI BIDANGAN LUARAN

Disekonomi bidangan luaran merujuk kepada kemerosotan kecekapan firma yang disebabkan oleh
perkembangan luaran firma atau industri secara keseluruhan sehingga megakibatkan kenaikan kos
pengeluaran dalam industri berkenaan.

1.
2.

1.
2.

Reduced Factors of Production

A decrease in labour and high costs of raw material will cause an increase in labour costs and
average costs of firm.
An increase in the number of firms in an industrial area will result in competition between firms
for raw materials. Finally, problems of scarcity in the market will occur
Kekurangan Faktor Pengeluaran
Kekurangan tenaga buruh dan harga bahan mentah yang tinggi akan menyebabkan peningkatan upah
buruh dan kos purata firma.
Kemasukan firma yang banyak ke dalam sesebuah kawasan perindustrian akan menyebabkan
persaingan antara firma untuk mendapatkan bahan mentah tertentu . Akhirnya, masalah kekurangan
akan berlaku dalam pasaran.

Settlement Difficulties
11.Difficulty for employees to find a place to live due to overpopulation in
industrial areas will cause an increase in transportation costs. Indirectly, this
will increase the production costs of firms in this industrial area.
Kesukaran Penempatan
1.Kesukaran pekerja memperoleh tempat tiggal akibat penumpuan petempatan berlebihan di
kawasan perindustrian tertentu akan menyebabkan peningkatan kos pengangkutan dan secara tidak
langsung, ini akan meningkatkan kos pengeluaran firma di kawasan perindustrian berkenaan.

Social Costs
1.Overpopulation in industrial areas will result in increased land prices,
overpopulation, traffic congestion, and environmental pollution.
2.These social problems will result in costs to society and indirectly cause
production costs to increase
Kos Sosial
1.Masalah kesesakan penduduk di kawasan perindustrian tertentu akan menyebabkan kenaikan
harga tanah, kesesakan tempat tinggal, kesesakan lalu lintas dan pencemaran alam sekitar.
2.Masalah sosial ini akan menimbulkan kos sosial dan secara tidak lansung menyebabkan kos
pengeluaran meningkat

PAST YEARS SEMESTER QUESTION

SOALAN-SOALAN PEPERIKSAAN AKHIR SEMESTER
JULY 2007- SECTION B QUESTION 3,
JULAI 2007 - BAHAGIAN B SOALAN 3,

a)Production

process need THREE important level to achieve afficient and effective

production. Clarify clearly production levels need to be considered by a firm.
b)Explain economies of scale concept and diseconomies of scale clearly.
a)Proses

pengeluaran memerlukan TIGA tahap yang penting untuk mencapai pengeluaran yang
cekap dan berkesan. Huraikan dengan jelas tahap- tahap pengeluaran yang perlu diambilkira oleh
sesebuah firma.
b)Huraikan konsep ekonomi bidangan dan dis ekonomi bidangan dengan jelas.
JANUARY 2009-SECTION B QUESTION 2,
JANAURI 2009- BAHAGIAN B SOALAN 2,

a)Explain the term Law of Daminishing Returns

b)Explain and show how the law affect the cost cuve of a firm.
a)Dengan berpandukan

kepada gambarajah yang sesuai, huraikan Hukum Pulangan Berkurangan.

b)Bagaimana hukum itu mempengaruhi keluk kos pengeluaran.

ANSWER
JAWAPAN
JULY 2007-SECTION B QUESTION 3,
JULAI 2207- BAHAGIAN B SOALAN 3,
a)Tahap-tahap pengeluaran

yang perlu diambilkira oleh sesebuah firma dapat dibahagi kepada tiga iaitu tahap partama
bermula dari titik asalan sehingga keluk keluaran purata mencapai maksimum., iaitu sehingga penggunaan unit buruh
ketiga. Dalam tahap ini jumlah keluaran bertambah dengan kadar bertambah dan kemudian dengan kadar yang
berkurangan manakala keluaran marginal meningkat pada mulanya sehingga mencapai maksimum, kemudian menurun
dan memotong keluk keluaran purata pada titik maksimum keluaran purata. Tahap kedua bermula selepas keluk
keluaran purata mencapai maksimum sehingga keluk keluaran marginal memotong paksi mendatar iaitu selepas
penggunaan unit buruh ketiga sehingga ketujuh. Dlam tahap ini, jumlah keluaran masih bertambah tetapi dengan
kadar yang semakin berkurangan. Keluaran marginal menurun tetapi masih bernilai positif sehingga mencapai nilai
sifar pada penggunaan unit buruh ketujuh. Kemudian tahap ketiga bermula selepas julmlah keluaran maksimum dan
keluaran marginal sifar iaitu selepas penggunaan unit ketujuh. Dalam tahap ini, keluk jumlah keluaran dan keluk
keluaran marginal bernilai positif.
Konsep ekonomi bidangan
1.DISEKONOMI PENGKHUSUSAN
Pengkhususan pekerja dalam bidang pekerjaan tertentu akan menimbulkan beberapa kelemahan seperti
kebosanan kerana pekerja terpaksa melakukan kerja yang sama secara berulang-ulang.kebosanan akan
menyebabkan daya pengeluaran menurun dan kesilapan cenderung berlaku.Ini akan meningkatkan kos
pengeluaran firma.
2.DISEKONOMI PEMASARAN
Apabila firma terus berkembang dan tingkat keluaran terus meningkat,ketidakcekapan penyelarasan antara
aktiviti jabatan dalam firma akan berlaku.Kelemahan penyelarasan
antara aktiviti jabatan akan
menjejaskan kelicinan aktiviti pemasaran yang dijalankan

ANSWER
JAWAPAN
JANUARY 2009-SECTION B QUESTION 3,
JANUARI 2009- BAHAGIAN B SOALAN 3,
a)
Hukum Pulangan Berkurangan berlaku apabila penggunaan satu input berubah ditambah kepada satu input
tetap akan menyebab jumlah keluaran bertambah dengan kadar yang rendah. Rajah 1.1 menunjukkan hukum
ini bermula dengan penggunaan unit buruh ketiga hingga unit kelima atau selepas keluaran marginal
maksimum sehingga keluaran marginal sifar.
Rajah 1.1:
(MP,AP)
Hukum Pulangan Berkurangan
Kws.1:
Kws. 2: Hukum Pulangan Marginal Berkurang.
Kws.1
Kws. 2

0
b) Hukum itu mempengaruhi keluk kos pengeluaran melalui

Kuantiti Buruh

SECTON A

1. Of the following statements about firms, which is not true?

A.
Firms will determine the types of goods and services that will be produced
B.
Firms will determine the most efficient combination of production inputs
C.
Firm will try to minimize profit
D.
Firms will try to maximise production
2. From the theory of production, economic efficiency refers to
A. The combination of inputs that will maximise outputs.
B. The combination of inputs that involves minimal costs.
C. The combination of inputs that involves decreasing costs.
D. The combination of inputs that involves a constant costs.

3. Of the following statements about the concept of time periods, which is not true?
A. In the short run, there are only fixed costs.
B. In the long run, all inputs are considered to be variable inputs.
inputs.
C. In the short run, variable costs are higher than fixed costs.
D. In the short run, all inputs are considered to be variable inputs.
4. Of the following, which is not considered to be a fixed input?
A.
Factory buildings
B.
Offices
C.
Raw materials
D.
Efficient managers

5. A production function shows the relationship between

A.
inputs and cost.
B.
Outputs and cost.
C.
Products and cost.
D.
Inputs and outputs.
outputs.
6. In the concept of production, industries refer to
A.
Large firms.
B.
Firms with a large capital.
C.
A group of firm that produce the same type of goods.
goods.
D.
A group of firms competing among each other.

7. Long run refers to a time period in which

A.
All inputs cannot be increased.
B.
All inputs can be increased.
C.
There is at least one variable input.
D.
There is at least one fixed input.
8. Of the following statements about short run production, which is not true?
A.Labour is assumed to be homogenous.
B. Rational producers will operate at a higher level of average production than marginal production.
C. Marginal production using variable factors is negative when total production decreases.
D. When marginal production increases,average production decreases.

9. The following table shows quantities of inputs used by a producer to produce certain output

Input X
(units)
1

Inputs Y
(units)

Input
Y(units)

Output
(units)

20

38

45

51

53

The producer will experience

A.
Decreasing returns
B.
Increasing returns
C.
Constant returns
D.
Diminishing returns
10. An increases in total production due to an increase of one unit of variable input is known as
A.
Marginal cost
B.
Average cost
C.
Marginal production
D.
Average production
11. In a production function, average production greater than marginal production corresponds to the stage of production starting
from
A.
Zero marginal production until maximum marginal production
B.
Maximum marginal production until zero marginal production
C.
Maximum average production and beyond
D.
Maximum total production and beyond

12. Of the following statements, which is not true when average production is greater than positive marginal production in a
production function?
A.
Average production is decreasing
B.
Total production is increasing
C.
Marginal production is zero
D.
Marginal production is decreasing
13. The law of decreasing returns begins when the marginal production curve
A.
Reaches a maximum point
B.
Rises
C.
Falls
D.
Intersects the X axis
14. The following table shows outputs quantities at several levels of labour quantity

Labour quantity
(people)

Output

80

76

70

66

At the level of three labourers, average production is

A.
10.4 units
B.
23.5 units
C.
25.3 units
D.
28.3 units

15. Negative marginal production means that

A.
An increase of one unit of labour will not change total production
B.
An increase of one unit of labour will change total production
C.
An increase of one unit of labour will decrease the usage of other inputs
D.
An increase of one unit of labour will increase total production
16. Production costs exist due to
A.
Mans unlimited wants
B.
Stagnant technology
C.
Government taxes
D.
Limited factors of production
17. Fixed costs are costs related to
A.
Inputs
B.
Fixed inputs
C.
Variable inputs
D.
Fixed inputs and variable inputs

18. Of the following, which is not a variable cost?

cost?
A.
Labour costs
B.
Raw material costs
C.
Transportation fuel costs
D.
Machinery purchase costs

19. Of the following, which is not a variable cost?

cost?
A.
Labour costs
B.
Raw material costs
C.
Transportation fuel costs
D.
Machinery purchase costs
20. Of the following costs, which may change correspondingly with the short run output quantity of a firm?
A.
Factory rent
B.
Interest on a loan
C.
Workers wages
D.
Managers salaries
21. The difference between total cost and variable cost is
A.
Fixed cost
B.
Average cost
C.
Marginal cost
D.
Average fixed cost
22. Marginal cost is equal to average variable cost when
A.
The marginal cost curve rises
B.
The average cost curve reaches its minimum point
C.
The average variable cost curve reaches its minimum point
D.
The average cost curve reaches its maximum point

23. Average costs increase when

A.
Average fixed costs increase
B.
Average fixed costs decrease
C.
Average variable costs increase
D.
Average variable costs decrese
24. An increase in total production will cause average fixed costs to
A.
Increase further
B.
Decrease further
C.
Increase, then decrease
D.
Decrease, then increase
25. Fixed costs borne by a firm are defined as costs that are
A.
Directly corresponding to output quantity
B.
Involved when production capacity is fully utilized
C.
Involved when the prices of inputs are constant
D.
Involved even though production costs are zero
26. Of the following statement about marginal costs, which is not true?
A.
Marginal costs are increased costs due to the increment of one unit output produced
B.
Marginal costs are related to total variable costs
C.
Marginal costs are equal to average costs when the average costs curve reaches its minimum level
D.
Marginal costs are higher than average costs when the average costs curve falls

27. In a firm, fixed costs are RM6OO, average costs are RM4, and average variable costs are RM2. Total production of the firm is
A.
100 units
B.
150 units
C.
200 units
D.
300 units
28. Of the following statements, which is true about the relationships between costs?
A.
Marginal costs will be greater than average fixed costs as much as average variable costs
B.
Marginal costs will be greater than average variable costs as much as average costs
C.
Average variable costs will be greater than average costs
D.
Average costs will be greater than average variable costs as much as average fixed costs
29. A firm planning curve refers to its
A.
Short run marginal cost curve
B.
Long run marginal cost curve
C.
Short run average cost curve
D.
Long run average cost curve
30. The law of decreasing returns can explain the shape of a
A.
Short run marginal cost curve
B.
Long run marginal cost curve
C.
Short run average cost curve
D.
Falling total fixed cost curve

31. Of the following statements about short run and long run average cost curves, which is not true?
A.
The long run average cost curve is a curve formed from a series of short run average cost curves
B.
When a long run average cost curve rises, the long run average cost curve will touch the rising section of the short run
average cost curve
C.
When the long run average cost curve falls, the long run average cost curve will touch the falling section of the short run
average cost curve
D.
Both the long run and short run average cost curve are U-shaped

32. A firm will experience lower long run average costs when production is increased because
A.
Fixed factors are utilized efficiently
B.
The firm can prevent other firm from entering the market
C.
The firm receives financial assistance from the government
D.
The firm enjoys the benefits of economies of scale

SECTION B
ESSAY QUESTIONS
1. Explain the differences between fixed inputs and variable inputs

Fixed inputs

Variable inputs

a)Inputs that only exist in the

short run
b)Inputs that do not vary
with total production

a)Inputs that only exist in the long run

b)Inputs that vary according to total
production

Examples : factory buildings

Examples : labour and raw materials

a) Total production
The quantity of goods and services produced in certain period
Formula : TP = Price (P) X Output quantity (Q)
b)Average production
Total production production produced by one unit of variable input
Formula:
AP= total production (TP)/total variable inputs (L)
c)Marginal production
Change in total production due to an increase of one unit of variable input.
formula:
MP= change in total production (ATP)/change in quantity of variable input (AL).

3. (a) explain the stages of production

Stage 1
-begins from the point of origin until the average production curve reaches its maximum level
-total production initially increases at an increasing rate, but then increasing rate.
-marginal production increases until reaching a maximum level, then decreases until it intersects with the average
production curve at its minimum point
Stage 2
-begin after the average production curve reaches its maximum point until the marginal production curve intersects with
the horizontal axis
-total production continues to increase, but at decreasing rate
-marginal production decreases, but is still positive
Stage 3
-begin after the total production curve reaches its maximum point and marginal production is zero
-marginal production is negative (draw a total production curve average production curve and show the stage of
production)

-total production continues to increase, but at decreasing rate

-marginal production decreases, but is still positive
Stage 3
-begin after the total production curve reaches its maximum point and marginal production is zero
-marginal production is negative (draw a total production curve average production curve and show the stage of
production)
(b) at which stage will a rational producer choose to operate? Why?
A rational producer will operate at stage 2
-At stage 1, even though average production increases (productivity increases), when they is an increase in
variable input, the level of production will not be efficient because the firm is not operating at full efficiency.
-At stage 3, production decrease with an increase in variable input, at this stage, production is inefficient
-Therefore, stage 2 is most suitable because at this level, the average production curve and total production curve
will rise, although at a decreasing rate. Also, the average production curve is above the marginal production curve.
This means that production is at a high level of efficient at this stage

4. Explain the following cost conceps

(a)
Total cost
-consists of fixed cost and variable cost
-increases when total production increases
(b) Average fixed cost
- the fixed cost involved in the production of one unit of output
- The average fixed cost curve will fall when total production increases.
(c)
Average cost
- Cost involved in the production of one unit of output
The average cost curve will initially fall until reaching a minimum point, and then rise
U shaped.
(d) Marginal cost.
Change in total cost due to an increase of one unit of production
In the short run, marginal cost is influenced by the change in total variable cost, while
fixed cost are fixed.

5. Explain the relationship between average variable cost curve, and

marginal cost curve.
-

When the average cost curve falls, the marginal cost curve
is below the average cost curve
When the average cost curve rises, the marginal cost curve
is above the average cost curve
The marginal cost curve intersects with the average variable
cost curve at their respective minimum point
(show relationship in graphical from )

6. Explain the concept of economies and diseconomies of scale.

Economies scale
Benefits due to decreased cost per unit of production and increased efficiency when large-scale production is
practiced
Indicated by a falling average cost curve
Types: specialization economies, managerial and administrative economies technical economies

Diseconomies of scale
-decrease in a firms efficiency and production due to internal and external expansion
-indicated by a rising average cost curve
-types: financial diseconomies, managerial and administrative diseconomies marketing diseconomies technical
diseconomies.

section c
1. The following table shows quantity of labour used at various levels of production in a firm

Labour
quantity (units)

Production
(units)

15

34

51

60

67

71

74

73

(a)

Calculate the average production and marginal production at each level of labour.

Quantity of labour (units)

Average production (units)

Marginal production (units)

15

15

17

19

17

17

15

13.4

11.8

10.6

9.1

-1

b) Using graph paper, draw the total production, average production and marginal production curves for each level of labour

c) State three relationship between average production and marginal production

-when the average production curve rises, the marginal production curve will be above the average production curve
- when the average production curve reaches its maximum point, the marginal production curve will intersect with the average
production curve
- when the average production curve falls, the marginal production curve will be below the average production curve

2. The following table shows cost information for a firm.

Production (units)

Total cost (units)

600

10

1050

20

1450

30

1800

40

2100

50

2450

60

2850

70

3300

80

3850

90

4500

100

5250

(a) Define marginal cost and average cost.

-marginal cost is the increase in total cost due to an increase of one unit of production
-average is the total cost involved in the production of one unit of output
(b) At each level of production, calculate
1) average variable cost
3)average cost
2) average fixed cost
4)marginal cost
Production
(units)

Variable
cost (RM)

Fixed cost
(RM)

Average
variable
cost (RM)

Average
fixed cost
(RM)

Average
cost (RM)

Marginal
cost (RM)

10

450

45

60

60

105

45

20

850

42.5

30

30

72.5

40

30

1200

40

20

20

60

35

40

1500

37.5

15

15

52.5

30

50

1850

37

12

12

49

35

60

2250

37.5

10

10

47.5

40

70

2700

38.6

8.6

8.6

47.1

45

80

3250

40.6

7.5

7.5

48.1

55

90

3900

43.3

6.7

6.7

50

65

100

4650

46.5

52.5

75

(c) Using graph paper, draw the average cost, total variable cost, and total fixed cost curves

3. The following table shows the relationship between a firms production and total variable cost.

Total (RM)

16

56

82

102

155

124

209

278

(a) Explain the difference between fixed cost and variable cost
-Fixed costs are costs that do not involve production volume. Fixed costs are involved even though production is zero.
Variable costs are costs that are influenced by production volume. When total production increases, variable costs also
increase.

(b) If the firms fixed cost is RM50, calculate the firms total cost at each level of production

Production (units)

Total

66

106

132

152

175

204

259

328

(c) Using graph paper, draw the total cost , total fixed cost and total variable cost curve.

(d) From the graph in c, determine the average fixed cost, average variable cost and average cost at the production level of 5.5
units.
Average fixed cost = 50/5.5
=RM 9.09
Average variable cost = 140/5.5
= RM 25.45
Average cost = 185/5.5
= RM 33.64