Taxation and Costs of Production Taxation Taxation Taxation

Taxation and Costs of Production ดร. สทธพล วบลยธนากล

ผลประกอบการของบรษทจดทะเบยน Net profits of Thai listed companies and oil price Bird flu Apr 2006

• Economic profit vs Accounting profit • Economic profit is always smaller than

The Production Function • The production function : The relationship between quantity of inputs

• The marginal product (MP) : The increase in output that arises from

• Now we got Total cost curve. • Total Cost vs Marginal Cost

• Total, Marginal, Average • Average Total Cost, Average Fixed Cost, Average Marginal

• สรป จากกราฟทตอนนเราเรยน เราทราบวา • Marginal Cost eventually rises with the quantity of

Cost in the short run and in the long run • ระยะสนหรอระยะยาว พจารณาจาก. .

การหากำไรสงสด • Profit = Total Revenue – Total Cost

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Taxation and Costs of Production ดร. สทธพล วบลยธนากล

Taxation

Taxation

Taxation

Taxation

DWL and the size of tax

Taxation

Revenue and the size of tax

The Costs of Production

ผลประกอบการของบรษทจดทะเบยน Net profits of Thai listed companies and oil price Bird flu Apr 2006 H 1 N 1 flu epidemic Mar 2009 Unit: billion baht (LHS) , USD per barrel (RHS) Tsunami Dec 2005 Lehman Brothers bankruptcy Aug 2008 Coup d’etat Sep 2006 Net profits (LHS) Average Dubai oil spot price (RHS) Source : SET, Ministry of Commerce Political unrest April - May 2010 Airport closure Dec 2008 Global economic slowdown 24

• Economic profit vs Accounting profit • Economic profit is always smaller than accounting profit? • เพราะ accounting profit มกละเลย Implicit cost • Cost Production Function

The Production Function • The production function : The relationship between quantity of inputs used to make a good and the quantity of output of that good.

• The marginal product (MP) : The increase in output that arises from an additional unit of input. • Marginal product of labour (MPL) • Diminishing Marginal Product : ? • The production function slope is the change in output from each additional input. • Then, the slope of production function is the marginal product of labour. • ยงใสคนงานเขาไปเพม MP ยงลด กราฟ production function กจะคอยแบนขน (ชนนอยลง (

MPL = Slope of Production Function

• Now we got Total cost curve. • Total Cost vs Marginal Cost • Marginal Cost คอ ? – An increase in total cost that arises from an extra unit of production – MC = d. TC/d. Q

• Total, Marginal, Average • Average Total Cost, Average Fixed Cost, Average Marginal Cost TC = FC + VC ATC = TC/Q AFC = FC/Q AVC = VC/Q MC = d. TC/d. Q

ATC = AFC + AVC

• สรป จากกราฟทตอนนเราเรยน เราทราบวา • Marginal Cost eventually rises with the quantity of output. )ตวอยางการจางคนงาน , รปภ. , คนสวน( • The ATC curve is U-shaped. • The MC curve crosses the ATC curve at the minimum of ATC.

Cost in the short run and in the long run • ระยะสนหรอระยะยาว พจารณาจาก. . • Short Run: • Long Run: • In the Long Run:

TR, AR, MR

การหากำไรสงสด • Profit = Total Revenue – Total Cost