L 14 Producers Technology u Producers have a
- Slides: 16
L 14 Producers
Technology u Producers: have a technology u A technology - a process converting inputs to an output u Typical Inputs: labor, physical and human capital, land, R&D, marketing capital u To make our life simpler: only two inputs capital ( ) and labor ( ) u Technology given by production function
Production function: Geometry L z K
Production function: Geometry L z K
Production function: Geometry L z K
Production function: Geometry y 5 L 3 z K
Production function: Geometry f(K, L) y 5 L 3 z K
3 Classic Examples Cobb-Douglass Fixed Proportions Perfect Substitutes
Marginal Product u MPK and MPL u Economic Interpretation of MPK – how much product goes up if K increases by 1 u MPL analogous but for L u Geometric Interpretation
MPK Increasing, Constant, Decreasing? Cobb-Douglass Fixed Proportions Perfect Substitutes
What’s new? u Monotone transformation! Nooooo! u Long run and Short run ( fixed) u Constant Returns to Scale (CRS) u Increasing (IRS), Decreasing (DRS)
CRS: Geometry L 2 z z K
Marginal Product and Returns to Scale
Profit Maximization (Short run) u Objective of the firm u Here: maximization of Profit u Short Run u Secret of happiness?
Profit Maximization (Short run) u Objective of the firm u Here: maximization of Profit u Short Run u Secret of happiness?
Profit Maximization (Short run)
- Vertices of a rectangular prism
- Words have meaning and names have power
- Bill a no mail on saturdays worksheet answers
- Modal verbs suggestion
- They have not rejected you but me
- I have resolved
- Ideas have consequences bad ideas have victims
- Past simple
- I have four legs and a tail i have no teeth
- Is couldn't past tense
- A(n) _____ has an endoskeleton and usually a spiny skin.
- Producers examples
- Producer decomposer consumer
- What are some consumers in the tropical rainforest
- Desert biome food chain
- Producer in the tropical rainforest
- Choices producers make