1. Topic on Production and Cost Functions and Their Estimation

3. Production function Thomas Machine Company

4. Production function Thomas Machine Company

5. Production function Thomas Machine Company

10. Production functions with two variable inputs

11. Q = f (labor, machine Tools)

13. Labor Capital 0 K 2 100 200 300 K 1 L 2 L 1

16. Labor Capital 0 M/P K M/P L Slope = -P K /P L

17. Maximization of output for given cost Labor Capital 0 100 200 300 R

18. MP L /P L = MP K /P K Labor Capital 0 100 200 300 R

25. The Analysis of Costs

31. Fixed, variable, and total costs Media Corp.

32. Fixed, Variable, and Total Costs -- Media Corp.

33. Average and marginal costs Media Corp.

34. Average and marginal costs Media Corp.

38. Minimum efficient scale The smallest output at which long-run average cost is a minimum. Quantity of output Average cost Q mes

41. Break-even analysis Quantity of output Dollars Total Revenue Total Cost Loss Profit