经济学原理Chap13曼昆.ppt

The Costs of Production Chapter 13 Copyright ? 2001 by Harcourt, Inc . All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. The Costs of Production The Law of Supply: u Firms are willing to produce and sell a greater quantity of a good when the price of the good is high. u This results in a supply curve that slopes upward. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. The Firm ’ s Objective The economic goal of the firm is to maximize profits. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. A Firm ’ s Total Revenue and Total Cost u Total Revenue u The amount that the firm receives for the sale of its output. u Total Cost u The amount that the firm pays to buy inputs. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. A Firm ’ s Profit Profit is the firm ’ s total revenue minus its total cost. Profit = Total revenue - Total cost Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Costs as Opportunity Costs A firm ’ s cost of production includes all the opportunity costs of making its output of goods and services. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Explicit and Implicit Costs A firm ’ s cost of production include explicit costs and implicit costs. u Explicit costs involve a direct money outlay for factors of production. u Implicit costs do not involve a direct money outlay. Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Economic Profit versus Accounting Profit u Economists measure a firm ’ s economic profit as total revenue minus all the opportunity costs (explicit and implicit). u Accountants measure the accounting profit as the firm