The document discusses production decisions for competitive firms in the short run. It explains that in the short run, firms must choose their level of variable inputs while capital is fixed. A firm maximizes profits by producing at the quantity where marginal revenue (MR) equals marginal cost (MC). If price is greater than average total cost at this quantity, the firm earns profits. If price is less than average total cost, the firm incurs losses, though it still produces the profit-maximizing quantity.
The cost of production/Chapter 7(pindyck)RAHUL SINHA
content
•MEASURING COST: WHICH COSTS MATTER?
•Fixed and variable cost
•Fixed versus sunk cost
•Amortizing Sunk Costs
•Marginal cost
•Average cost
•Determinants of short run cost
•Diminishing marginal returns
•The shapes of cost curves
•The Average–Marginal Relationship
•Costs in a long run
•Cost minimizing input choices
•Isocost lines
•Marginal rate of technical substitution
•Expansion path
•The Inflexibility of Short-Run Production
•Long run average cost
•Economies and Diseconomies of Scale
•The Relationship Between Short-Run and Long-Run Cost
•Break even analysis
The cost of production/Chapter 7(pindyck)RAHUL SINHA
content
•MEASURING COST: WHICH COSTS MATTER?
•Fixed and variable cost
•Fixed versus sunk cost
•Amortizing Sunk Costs
•Marginal cost
•Average cost
•Determinants of short run cost
•Diminishing marginal returns
•The shapes of cost curves
•The Average–Marginal Relationship
•Costs in a long run
•Cost minimizing input choices
•Isocost lines
•Marginal rate of technical substitution
•Expansion path
•The Inflexibility of Short-Run Production
•Long run average cost
•Economies and Diseconomies of Scale
•The Relationship Between Short-Run and Long-Run Cost
•Break even analysis
Price Elasticity of Demand, Degrees of Elasticity, Factors determining Elasticity of Demand, Measurement of Price Elasticity, Importance of Elasticity of Demand
This presentation is used in my lecture on market equilibrium analysis(Managerial Economics-MBA). Your feedback is important for me. Thx
My other work can be seen at www.educationpyramid.com
The Theory of Consumer Choice - Budget Line & ConstraintFaHaD .H. NooR
Do all demand curves slope downward?
How do wages affect labour supply?
How do interest rates affect household saving?
Do the poor prefer to receive cash or in-kind transfers?
Economics #UCP STUDY MATERIAL
cost of production / Chapter 6(pindyck)RAHUL SINHA
topics covered
•Production and firm
•The production function
•Short run versus Long run
•Production with one variable input(Labour)
•Average product
•Marginal product
•The slopes of the production curve
•Law of diminishing marginal returns
•Production with two variable inputs
•Isoquant
•Isoquant Maps
•Diminishing marginal returns
•Substitution among inputs
•Returns to scale
•Describing returns to scale
Price Elasticity of Demand, Degrees of Elasticity, Factors determining Elasticity of Demand, Measurement of Price Elasticity, Importance of Elasticity of Demand
This presentation is used in my lecture on market equilibrium analysis(Managerial Economics-MBA). Your feedback is important for me. Thx
My other work can be seen at www.educationpyramid.com
The Theory of Consumer Choice - Budget Line & ConstraintFaHaD .H. NooR
Do all demand curves slope downward?
How do wages affect labour supply?
How do interest rates affect household saving?
Do the poor prefer to receive cash or in-kind transfers?
Economics #UCP STUDY MATERIAL
cost of production / Chapter 6(pindyck)RAHUL SINHA
topics covered
•Production and firm
•The production function
•Short run versus Long run
•Production with one variable input(Labour)
•Average product
•Marginal product
•The slopes of the production curve
•Law of diminishing marginal returns
•Production with two variable inputs
•Isoquant
•Isoquant Maps
•Diminishing marginal returns
•Substitution among inputs
•Returns to scale
•Describing returns to scale
The 2nd issue of the 1st volume of Magma. The issue covers Yum! Food’s exponential growth, Flicking the middle finger, Samsung Galaxy Note arrives in the USA, Tata Starbucks arrives in India. The secret of flying high, Exploiting Emotions, The first P: Product.
What do you think are possible effects of a merger on consumers?A merged company may have a higher market power and thus the ability to increase prices.Staple’s lawyer will argue that a merger will not necessarily increase price. Why will price not increase? Market share will not increase. What is Market Share? Share of Consumers purchasing from the firm. How do you know this? Who are its competitors etc.
Variants of CokeSpriteMinute Maid Juice
If it increases its price what would be the effect?- Remain same. Decrease. Increase.What is Coke’s market? How can consumer’s substitute?
4 Firm Concentration Ratio is same for both but does that mean that X is equally concentrated as YWhat is the 3 Firm concentration ratio?
% of total industry sales attributed by the n largest firmsIdentical firms the curve is a straight lineIf curve of X is above that of Y. It is more concentrated than Y till 4 firms