MARK HIRSCHEY 10 E Power Point Presentation by

MARK HIRSCHEY 10 E Power. Point Presentation by Charlie Managerial Economics 10 e Cook MANAGERIAL ECONOMICS Chapter 7 Production Analysis and Compensation Policy © 2003 South-Western/Thomson Learning

Representative Production Surface Figure 7. 1 Managerial Economics 10 e 2

Total, Average, and Marginal Product for Input X, Given Y = 2 Figure 7. 2 Managerial Economics 10 e 3

Total Marginal, and Average Product Curves: (A) Total Product Curve for X, Holding Y = Y 1; (B) Marginal Product Curve for X, Holding Y = Y 1 Figure 7. 3 Managerial Economics 10 e 4

Representative Isoquants for Table 7. 1 Figure 7. 4 Managerial Economics 10 e 5

Isoquants for Inputs with Varying Degrees of Substitutability: (A) Electric Power Generation; (B) Bicycle Production Figure 7. 5 a Managerial Economics 10 e 6

Isoquants for Inputs with Varying Degrees of Substitution: (C) Dress Production Figure 7. 5 b Managerial Economics 10 e 7

Maximum Variable Proportions for Inputs X and Y Figure 7. 6 Managerial Economics 10 e 8

MRP Curve Is an Input Demand Curve Figure 7. 7 Managerial Economics 10 e 9

Isocost Curves Figure 7. 8 Managerial Economics 10 e 10

Optimal Input Combinations Figure 7. 9 Managerial Economics 10 e 11

Returns to Scale May Be Constant, Decreasing, or Increasing Figure 7. 10 Managerial Economics 10 e 12

Productivity Growth Jumped in the Late 1990 s Figure 7. 11 Managerial Economics 10 e 13

Manufacturing Productivity Growth Has Been Impressive Figure 7. 12 Managerial Economics 10 e 14