微观经济学（N. Gregory Mankiw）教学课件ch13-presentation.pdfVIP

5 Firm Behavior and the Organization of Industry THE COSTS OF PRODUCTION 0 C H A P T E R 13 The Costs of Production P R I N C I P L E S O F Economics N. Gregory Mankiw bannannan@dufe.edu.cn 2015-05-21 © 2009 South- Western, a part of Cengage Learning, all rights reserved  We used the supply curve to summarize firm’s production decisions. For analyzing many questions, the law of supply is all you need to know about firm behavior. We now examine what decisions lie behind the supply curve.  In addition, it will introduce you to a part of economics called industrial organization- the study of how firm’s decisions about prices and quantities depend on the market conditions they face. THE COSTS OF PRODUCTION 2 What Are Costs?  The firm’s objective The economic goal of the firm is to maximize profits. THE COSTS OF PRODUCTION 3 Total Revenue, Total Cost, Profit  Profit is the firm’s total revenue minus its total cost. Profit = Total revenue – Total cost the amount a the market firm receives value of the from the sale inputs a firm of its output uses in production THE COSTS OF PRODUCTION 4 Costs as Opportunity Costs  A firm’s costs of production includes all the opportunity cost of making its outp