1 Total Product TP 2 Average Product AP

������ 1. ������� (Total Product : TP) 2. ������ (Average Product : AP) AP = TP X 3. ������ (Marginal Product : MP) MP = TP X

������������� (Total , ������� Marginal , Average Product) �������� (X) Q MPX = Q / X APX = Q/X 0 1 15 Q + 15 15. 0 2 X 31 Q + 16 15. 5 3 48 + 17 16. 0 4 59 + 11 14. 8 5 68 +9 13. 6 6 72 +4 12. 0 7 73 +1 10. 4 8 72 -1 9. 0 9 70 -2 7. 8 10 67 -3 6. 7

����������������� ( Input - Output decision ) Y = f ( X 1 / , X 2 , X 3 , … , X n( X 1 0 1 2 3 4 5 6 7 8 9 Y 0 5 12 21 32 40 42 42 40 36 Y / X 1 5 6 7 8 8 7 6 5 4 Y 5 7 9 11 8 2 0 -2 -4 X 1 1 1 1 1 Y / X 1 = MP 5 7 9 11 8 2 0 -2 -4

����������������� ( Input - Output decision ) ������� 1 ����� (Increasing Return to Scale) ������� 2 ������ (Diminishing Return to Scale) ������� 3 ������ (Decreasing Return to Scale)

�������� . 1 Linear function Q = a + b. X (���� Q = a + b 1 X 1 + b 2 X 2 + …+ bn. Xn )���� 2. Power function Q=a. K L (Cobb-Douglas Function) 3. Cubic function Q = a + b. X + c. X 2 + d. X 3

�������� (Marginal Rate of Technical Substitution) X 1 MRTSX 2 X 1 = A - X 1 B 0 X 2 Iq X 2 X 1 X 2

�������� (Isocost �������� curve) X 1 100 = 10 10 8 0 Slope = M/Px 1 = M. Px 2 M/Px 2 Px 1 M = Px 2 = - 5 = - 1 Px 1 10 2 A • 4 B • • C D • 100 = 20 X 2 5 �����M = 100 Px 1 = 10 Px 2 = 5

�������� X 1 MRTSX 2 X 1 = X 1 X 2 = -Px 2 Px 1 E X 1 0 Iq X 2 X 13 Expansion path X 12 X 11 0 A B C Iq 3 Iq 2 Iq 1 X 22 X 23 X 2

�������� (X 1) ������ (X 2) MRTSX 2 X 1 = X 1 X 2 Px 1 5 X = -1 0 X =2 2 1 4 1 2 - 0. 50 - 0. 20 3 3 5 - 0. 33 - 0. 20 2 10 - 0. 20 1 20 - 0. 10 - 0. 20 0 35 - 0. 07 - 0. 20 ����� Px 2 = 20 Px 1100 =

�������� X 1 5 X 1 4 3 2 1 - 0. 50 A - 0. 33 B - 0. 20 C D 0 2 X 2 5 10 MRTSX 2 X 1 = - 0. 10 E 20 X 1 X 2 - 0. 07 F 35 X 2

������ (Return to scale) 1. Constant returns to scale 2. Increasing returns to scale 3. Decreasing returns to scale

������ (Return to scale) Y Y 0 Y 3 Q 3 = 30 Q 2 = 20 Y 2 Q 2 = 20 Q 1 = 10 Y 1 Q 1 = 10 X X 1 X 2 X 3 Y Y 3 Q 3 = 30 Y 2 Q 2 = 20 Y 1 Q 1 = 10 X X X 3 1 2 Y 3 Y 2 Y 1 ���������

Constant Returns to Scale Q (a) (b) Q Y X, Y X

Increasing Returns to Scale Q (a) (b) Q Y X, Y X

Decreasing Returns to Scale Q (a) (b) Q Y X, Y X

Variable Returns to Scale Q (a) (b) Q Y X, Y X

Output Elasticity and Returns to Scale Output Elasticity Q = % Change in Output ( Q ) % Change in All Inputs ( X ) = Q/Q X/X = Q. X XQ

Output Elasticity and Returns to Scale ��� % Change in Q > % Change in X ������ Q ���� Increasing returns to Scale ��� % Change in Q = % Change in X ������ Q ���� Constant returns to Scale ��� % Change in Q < % Change in X ������ Q ���� Decreasing returns to Scale

Output Elasticity and Returns to Scale ���������� h. Q = f ( k. X , k. Y , k. Z ) ��� h>k Q >1 ���� Increasing h=k Q =1 ���� Constant h<k Q <0 ���� Decreasing

Output Elasticity and Returns to Scale Q = % Q = + 10 % % X = + 15 % + 10 % = + 6% + 10 % = - 3% + 10 % =1% = 1. 5 % = 0. 6 % = - 0. 3 %