Scribd Logo
Upload

Welcome to Scribd!

  • 3.chapter 3 - Cost and Production

    Uploaded by

    Mohd Quastan Alhakim
    2 views46 pages
    This document outlines chapter 3 of an economics textbook on costs and production. The chapter will cover firm supply decisions and cost behavior, long-run and short-run costs including total, marginal and average costs, as well as returns to scale. It introduces key concepts like production functions, marginal product, and how the marginal product of labor relates to changes in output from adding additional workers.

    Original Description:

    Original Title

    3.Chapter 3_cost and Production

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines chapter 3 of an economics textbook on costs and production. The chapter will cover firm supply decisions and cost behavior, long-run and short-run costs including total, marginal and average costs, as well as returns to scale. It introduces key concepts like production functions, marginal product, and how the marginal product of labor relates to changes in output from adding additional workers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views46 pages

    3.chapter 3 - Cost and Production

    Uploaded by

    Mohd Quastan Alhakim
    This document outlines chapter 3 of an economics textbook on costs and production. The chapter will cover firm supply decisions and cost behavior, long-run and short-run costs including total, marginal and average costs, as well as returns to scale. It introduces key concepts like production functions, marginal product, and how the marginal product of labor relates to changes in output from adding additional workers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 46

    CHAPTER 3

    COSTS AND PRODUCTION

    PREPARED BY : MDM SYAROZA


    CHAPTER OUTLINES
    FIRM SUPPLY DECISION AND COST
    BEHAVIOUR
    LONG RUN TOTAL, MARGINAL AND
    AVERAGE COSTS
    SHORT RUN COSTS AND DIMINISHING
    MARGINAL RETURN
    RETURN OF SCALE
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR

    Production Function
    • Production function
    • Relationship between
    • Quantity of inputs used to make a good
    • And the quantity of output of that good
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR

    Marginal Product
    • Marginal product
    • Increase in output that arises from an additional unit of input
    • Marginal product of labor, MPL
    • MPL = ∆Q/∆L
    • If Jack hires one more worker, his output rises by the marginal
    product of labor.
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    FIRM SUPPLY DECISION AND COST BEHAVIOUR
    THANK YOU

    You might also like