Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
Isoquants, MRTS, Concept of Total Product, Average & Marginal Product, Short Run and Long Run analysis of production, The Law of Variable proportion, Returns to scale,
Production Cost – Concept of Cost, Classification of Short run cost – Long run cost,
Students should be able to:
Understand and distinguish between productive and allocative efficiency
Know that the minimum point on the average total cost is the most productively efficient point and that allocative efficiency occurs where price is equal to marginal cost
Understand the meaning of inefficiency e.g. X-inefficiency
Supply Demand and Equilibrium..
Market Exchange..
Law of Supply...
Law of Demand...
Laws of supply and demand versus the “theory of supply and demand”
Laws vs. Theory of Supply and Demand..
Different types of demand..
Market Supply ..
Demand Curve..
Supply Curve..
Market Equilibrium..
Elasticity..
Own price elasticity of demand..
Isoquants, MRTS, Concept of Total Product, Average & Marginal Product, Short Run and Long Run analysis of production, The Law of Variable proportion, Returns to scale,
Production Cost – Concept of Cost, Classification of Short run cost – Long run cost,
Students should be able to:
Understand and distinguish between productive and allocative efficiency
Know that the minimum point on the average total cost is the most productively efficient point and that allocative efficiency occurs where price is equal to marginal cost
Understand the meaning of inefficiency e.g. X-inefficiency
Supply Demand and Equilibrium..
Market Exchange..
Law of Supply...
Law of Demand...
Laws of supply and demand versus the “theory of supply and demand”
Laws vs. Theory of Supply and Demand..
Different types of demand..
Market Supply ..
Demand Curve..
Supply Curve..
Market Equilibrium..
Elasticity..
Own price elasticity of demand..
TUI University 1Supply and ProductionMicroeconomics.docxwillcoxjanay
TUI University 1
Supply and Production
Microeconomics
ECO201
TUI University
TUI University 2
THE SUPPLY CURVE
Shows the relationship between the
price of a good and the quantity
that producers want to sell.
TUI University 3
THE LAW OF SUPPLY
The higher the price, the
larger the quantity
supplied.
TUI University 4
What Causes Supply Curve To Shift
(Change in relationship of price and Quantity)
Change (increase or decrease) in cost of
production -- inputs;
Increase (or decrease) in the number of
producers.
Change (increase or decrease) in tax rates.
State of production technology.
TUI University 5
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
SUPPLY
TUI University 6
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
SUPPLY
16 26
RIGHTWARD
SHIFT
INCREASE IN SUPPLY
TUI University 7
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
SUPPLY
DECREASE IN SUPPLY
LEFTWARD
SHIFT
13 23
TUI University 8
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
SUPPLY
Greater
Supply
Lesser
Supply
(Greater quantity
for the same
price)
(Smaller quantity
for the same price)
TUI University 9
MARKET EQUILIBRIUM
The quantity of a product demanded is exactly
equal to the quantity supplied.
There is no pressure to change price.
TUI University 10
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
Market
Equilibrium
DEMAND
SUPPLY
TUI University 11
SHORTAGE
Occurs when the market price is below the
equilibrium price.
Consumers are willing to buy more of the
product, at this lower price, than producers
are willing to sell.
TUI University 12
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
Market
Equilibrium
26
SUPPLY
DEMAND
shortage
TUI University 13
SURPLUS
Occurs if market price exceeds equilibrium
price.
Producers are willing to sell more, at this
higher price, than consumers are willing to
buy.
TUI University 14
Price
per
Pound
of
Apples
Thousands of Pounds of Apples per day
$$$
10 20 30
$0.20
$0.40
$0.60
$0.80
$1.00
Market
Equilibrium
15
SUPPLY
DEMAND
surplu
s
TUI University 15
The role of costs in production
Everything costs something
When we decide on production possibilities, we
have to pay attention to costs
Economists have a distinctive way of looking at
costs.
TUI University 16
A firm’s actual cash payments
for its inputs.
$ $ $ $ $ $ $ $ $ $ $
EXPLICIT COSTS
TUI University 17
Implicit Costs
Opportunity costs o ...
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 2 Examine what items are included in a firm’s costs of production. Analyze the link between a firm’s production process and its total costs. Learn the meaning of average total cost and marginal cost and how they are related. Consider the shape of a typical firm’s cost curves. Examine the relationship between short-run and long run costs. In this chapter you will…
3. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 3 Supplyand demand are the two words that economists use most often. Supplyand demandare the forces that make market economies work. Modern microeconomics is about supply, demand, and market equilibrium. THE COSTS OF PRODUCTION
4. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 4 According to the Law of Supply: Firms are willing to produce and sell a greater quantity of a good when the price of the good is high. This results in a supply curve that slopes upward. The Firm’s Objective The economic goal of the firm is to maximize profits. THE COSTS OF PRODUCTION
5. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 5 Total Revenue The amount a firm receives for the sale of its output. Total Cost The market value of the inputs a firm uses in production. Profit The firm’s total revenue minus its total cost. Profit = Total revenue - Total cost Total Revenue, Total Costs, and Profit
6. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 6 A firm’s cost of production includes all the opportunity costs of making its output of goods and services. Explicit and Implicit Costs A firm’s cost of production include explicit costs and implicit costs. Explicit costs are input costs that require a direct outlay of money by the firm. Implicit costs are input costs that do not require an outlay of money by the firm. Cost as an Opportunity Cost
7. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 7 Example: Helen uses $300 000 of her savings to buy her cookie factory from the previous owner. If she had left her money in a savings account that pays an interest at a rate of 5 percent, she would have earned $15 000 a year. Helen by buying a cookie factory has foregone $15 000 a year in interest income. This foregone $15 000 is an implicit opportunity cost of Helen’s business. The accountant will not show this cost. Cost as an Opportunity Cost
8. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 8 Economists measure a firm’s economic profitas total revenue minus total cost, including both explicit and implicit costs. Accountants measure the accounting profitas the firm’s total revenue minus only the firm’s explicit costs. Economic Profit versus Accounting Profit
9. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 9 When total revenue exceeds both explicit and implicit costs, the firm earns economicprofit. Economic profit is smaller than accounting profit. Economic Profit Versus Accounting Profit
10. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 10 Revenue Revenue Total Opportunity Costs Figure 13-1: Economists versus Accountants How an Accountant Views a Firm How an Economist Views a Firm Accounting profit Economic profit Implicit costs Explicit costs Explicit costs
11. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 11 Assumption: The size of Helen’s cookie factory is fixed and the quantity of cookies produced can only vary by changing the number of workers. This assumption is realistic in the short-run but not the long-run. PRODUCTION AND COSTS
12. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 12 $30 $0 $30 0 50 40 10 30 50 40 50 20 30 90 30 60 30 30 120 20 70 40 30 140 10 80 50 30 150 Table 13-1: A Production Function and Total Cost: Hungry Helen’s Cookie Factory Total cost of inputs (cost of factory + cost of workers) Cost of worker Cost of factory Marginal product of labour Output (quantity of cookies produced per hour) Number of workers 0 1 2 3 4 5
13. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 13 The Production Function The production functionshows the relationship between quantity of inputs used to make a good and the quantity of output of that good. Marginal Product The marginal productof any input in the production process is the increase in output that arises from an additional unit of that input. PRODUCTION AND COSTS
14. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 14 Diminishing Marginal Product Diminishing marginal productis the property whereby the marginal product of an input declines as the quantity of the input increases. Example: As more and more workers are hired at a firm, each additional worker contributes less and less to production because the firm has a limited amount of equipment. PRODUCTION AND COSTS
15. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 15 150 140 120 90 50 Figure 13-2: Hungry Helen’s Production Function Quantity of Output (cookies per hour) Production function 1 0 4 2 3 5 Number of Workers Hired
16. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 16 Diminishing Marginal Product Diminishing marginal productis the property whereby the marginal product of an input declines as the quantity of the input increases. Example: As more and more workers are hired at a firm, each additional worker contributes less and less to production because the firm has a limited amount of equipment. PRODUCTION AND COSTS
17. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 17 Diminishing Marginal Product The slope of the production function measures the marginal product of an input, such as a worker. When the marginal product declines, the production function becomes flatter. PRODUCTION AND COSTS
18. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 18 The relationship between the quantity a firm can produce and its costs determines pricing decisions. See last three columns in Table 13-1. The total-cost curve shows this relationship graphically. From the Production Function to the Total-Cost Curve
19. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 19 $30 $0 $30 0 50 40 10 30 50 40 50 20 30 90 30 60 30 30 120 20 70 40 30 140 10 80 50 30 150 Table 13-1: A Production Function and Total Cost: Hungry Helen’s Cookie Factory Total cost of inputs (cost of factory + cost of workers) Cost of worker Cost of factory Marginal product of labour Output (quantity of cookies produced per hour) Number of workers 0 1 2 3 4 5
20. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 20 $80 70 60 50 40 30 50 120 140 150 90 Figure 13-3: Hungry Helen’s Total-Cost Curve Total Cost Total-cost curve 0 Quantity of Output (cookies per hour)
21. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 21 Costs of production may be divided into fixed costsand variable costs. Fixed costs are those costs that do notvary with the quantity of output produced. Variable costs are those costs that do varywith the quantity of output produced. THE VARIOUS MEASURES OF COST
22. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 22 Total Costs Total Fixed Costs (TFC) Total Variable Costs (TVC) Total Costs (TC) TC = TFC + TVC THE VARIOUS MEASURES OF COST
23. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 23 Average Costs Average costs can be determined by dividing the firm’s costs by the quantity of output it produces. The average cost is the cost of each typical unit of product. THE VARIOUS MEASURES OF COST
24. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 24 Average Costs Average Fixed Costs (AFC) = ATC / Q Average Variable Costs (AVC) = AVC / Q Average Total Costs (ATC) = ATC / Q ATC = AFC + AVC THE VARIOUS MEASURES OF COST
25. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 25 Marginal Cost Marginal cost(MC) measures the increase in total cost that arises from an extra unit of production. Marginal cost helps answer the following question: How much does it cost to produce an additional unit of output? THE VARIOUS MEASURES OF COST
26. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 26 Marginal Cost Marginal cost(MC) measures the increase in total cost that arises from an extra unit of production. Marginal cost helps answer the following question: How much does it cost to produce an additional unit of output? THE VARIOUS MEASURES OF COST
28. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 28 15.00 11.00 5.40 3.00 8 10 0 Figure 13-4: Thirsty Thelma’s Total-Cost Curve Total Cost Total-cost curve 4 Quantity of Output (glasses of lemonade per hour)
29. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 29 Cost Curves and their Shapes The cost curves shown here for Thirsty Thelma’s Lemonade Stand have some features that are common to the cost curves of many firms in the economy. Lets examine three features in particular: The shape of the marginal cost curve The shape of the average cost curve The relationship between marginal and average total cost
30. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 30 MC ATC AVC 1.30 AFC Figure 13-5: Thirsty Thelma’s Average-Cost and Marginal-Cost Curves Costs 3.30 3.00 0 5 4 3 2 1 6 10 7 8 9 Quantity of Output (glasses of lemonade per hour)
31. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 31 Marginal cost rises with the amount of output produced. This reflects the property of diminishing marginal product. The average total-cost curve is U-shaped. At very low levels of output average total cost is high because fixed cost is spread over only a few units. Average total cost declines as output increases. Average total cost starts rising because average variable cost rises substantially. Cost Curves and their Shapes
32. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 32 Cost Curves and their Shapes The bottom of the U-shaped ATC curve occurs at the quantity that minimizes average total cost. This quantity is sometimes called the efficient scaleof the firm. Relationship between Marginal Cost and Average Total Cost Whenever marginal cost is less than average total cost, average total cost is falling. Whenever marginal cost is greater than average total cost, average total cost is rising. The marginal-cost curve crosses the average-total-cost curve at the efficient scale.
33. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 33 Typical Cost Curves In the previous examples, the firms exhibit diminishing marginal product and, therefore, rising marginal cost at all levels of output. Actual firms are often a bit more complicated than this. E.g., diminishing marginal product does not start after the first worker id hired. Table 13-3 shows such a firm.
34. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 34 --------- --------- --------- $ 0.00 $ 2.00 $ 2.00 0 1.00 $ 3.00 $ 1.00 $ 2.00 1.00 2.00 3.00 1 0.80 1.90 0.90 1.00 1.80 2.00 3.80 2 0.60 1.47 0.80 0.67 2.40 2.00 4.40 3 0.40 1.20 0.70 0.50 2.80 2.00 5.20 4 0.40 1.04 0.64 0.40 3.20 2.00 5.80 5 0.60 0.96 0.63 0.33 3.80 2.00 6.60 6 0.80 0.95 0.66 0.29 4.60 2.00 7.60 7 1.00 0.98 0.70 0.25 5.60 2.00 8.80 8 1.20 1.02 0.76 0.22 6.80 2.00 10.20 9 1.40 1.07 0.82 0.20 8.20 2.00 11.80 10 Table 13-3: The Various Measures of Cost: Big Bob’s Bagel Bin Marginal Cost Average Total Cost Average Variable Cost Average Fixed Cost Variable Cost Fixed Cost Total Cost Quantity of lBagels (per hour)
37. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 37 Typical Cost Curves Three Important Properties of Cost Curves Marginal cost eventually rises with the quantity of output. The average-total-cost curve is U-shaped. The marginal-cost curve crosses the average-total-cost curve at the minimum of average total cost.
38. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 38 THE RELATIONSHIP BETWEEN THE SHORT RUN AND THE LONG RUN For many firms, the division of total costs between fixed and variable costs depends on the time horizon being considered. In the short run, some costs are fixed. In the long run, fixed costs become variable costs. Because many costs are fixed in the short run but variable in the long run, a firm’s long-run cost curves differ from its short-run cost curves.
39. ATC in short ATC in short ATC in short run with run with run with small factory medium factory large factory ATC in long run Figure 13-7: Average Total Cost in the Short and Long Runs Average Total Cost $12,000 Quantity of 0 1,200 Cars per Day
40. Mankiw et al. Principles of Microeconomics, 2nd Canadian Edition Chapter 13: Page 40 Economies and Diseconomies of Scale Economies of scalerefer to the property whereby long-run average total cost falls as the quantity of output increases. Diseconomies of scalerefer to the property whereby long-run average total cost rises as the quantity of output increases. Constant returns to scalerefers to the property whereby long-run average total cost stays the same as the quantity of output increases
41.
42. When analyzing a firm’s behavior, it is important to include all the opportunity costs of production.