Barbos has questions. What are the laws of production do we know?
Barbos. Some laws, of course, exist, but what? That is the question. In the end, my business just is to ask questions, is it not a kind reader? The mind comes unless: the order of the owner of the law for the dog. I still remember, in childhood I had to hear Anton tozcenize physical laws, and his grandmother checked him. They spoke, in my opinion, about the body and liquid and how many times the body would be immersed in liquid, the result is the same.
Anton. Usually economists call two main, or the most important, the law of production. The law of decreasing productivity, which is discussed in a detailed manner in the 3rd lecture, and the law of changing returns from scale.
Igor. Talk first about the law of decreasing performance. It is often referred to as the law of non-permanent proportions, because this law explains the decline in the productivity of the variable factor (for example, fertilizers) with the help of changes in the ratio of variable and permanent volumes (for example, land) factors.
Anton. Well, yes, from the 3rd lecture, I perfectly remember the law of decreasing fertility, the open Turgo. It is quite clear to me that the moment will be sure when the additional portions of fertilizer made on the same site of the Earth will not only not contribute to the increase in yield, but will even lead to a negative limit performance of fertilizers.
Barbos. Yes, if you reconcile me with something even very tasty, the moment will surely come when the pleasure turn into torment.
Igor. You said: the limiting productivity of the factor, i.e. meant an increase in yield when adding a unit of fertilizers?
Ahtoh. That's right. This indicator is also called the limiting product of the variable factor.
Igor. Well, the principle is understandable. If the fixed resource is not provided with a variable, then the productivity of the variable resource is high, and if redundantly h is low.
Anton. And what prevents us all the most rationally combine the volume of variable and permanent factors?
Barbos. And Anton and I recently delivered potatoes from the store home. I guarded this product Giffen, and Anton carried the bag. So, my reasonable owner, gradually filling the bags of the bags, all the time sentenced it: Ove is good, that in moderation, everything is fine, that in the middle.
Igor. Imagine that you are the owner of the sewing workshop, and in this summer season on your products an attractive demand born by a capricious fashion. Tell me now, would you like to increase production?
Anton. So I want that there is no strength to endure. I would immediately hurt for a sewing machine and would sit, not flexing, three shifts, just to satisfy the rising demand, born in a capricious fashion.
Barbos. It's curious, I did not think that Anton had such a traction to the sewing case! In every person, it can be seen, the artist is sleeping.
Igor. So, so, now say, what would happen as a result of an increase in production?
Anton. I would buy more material, it would have stored it not only in the storerooms, but also in the main placement of the workshop, I would hire a bigger foot-motorist, who would have worked on all my sewing machines, I would increase the duration of the working day, I would introduce Two, better three shifts, I would cancel the weekend, I myself began to work on a sewing machine.
Barbos. Horrible! Who would then take me for a walk?
Igor. Wonderful! And what will it hurt rationally combine the volume of variable and permanent factors?
Anton. Let's think. Recall first of all that during this summer season I will not have time to build a new building to increase production areas, where I could install new sewing machines.
Igor. So listed factors: production areas, sewing machines and, probably, the talent of the entrepreneur will remain unchanged? And that is why we call them constant?
Anton. Well, of course, for my sewing case, a short period, perhaps, will take even more than three year old months. During this time, I can increase the amount of materials used. It is possible that the storage of materials in unsuitable places will increase the time of their search, it makes it difficult to move on the workshop itself, and it may still be that from the storage of these materials in the premises of the workshop will not breathe.
Igor. And now let's remember the work that is applied in an increasing volume.
Ahtoh. Yes Yes Yes. Previously, I had a job in one shift, and in the evening the equipment was prevented. Two sewing machines were in the reserve for repair and urgent work. Now I will loan all the cars, and I still arrange two or three shifts. Most likely, this will lead to more frequent breakdowns and downtime. And yet: I will recruit new people, and they do not have the skill of work on our products, they will work slower. In addition, the productivity will undoubtedly be much lower in the third shift.
Igor. Well, the picture is evaporated, and now tell about your business talent.
Anton. Of course, I will have to abandon the thought of working yourself on the sewing machine, but it will be very hard for the production of three shifts. I will be so tired that my solutions are unlikely to be as good luck as before.
Igor. So what is the result? Production will be increased, but additional variables will work with increasingly productivity?
Anton. Well, now it is clear to me how to answer your own question that I prevent me from combining factors is always the most rational. I think the reader also guessed about the reason for all our difficulties. Yota Cause H A short period in which my workshop was.
Baples. This is how the clarity of the mind. He himself asked the question himself answered him, and he answered h as if cut off. I even have nothing to add to it.
Igor. But what about a long period?
Anton. Yes, now we have to imagine our, and rather, my alleged sewing workshop is no longer during the summer season, but on the interval, let's say, in two years.
Igor. In other words, do you want to free yourself from the deterrent development of your workshop of the short period of circumstances?
Anton. Exactly. In a long period, all factors may vary along with a change in the volume of release, and nothing prevents us from increasing resources at the same time.
Barbos. Yes, I feel, Anton dreams of turning his, or rather, our workshop in the sewing factory. In the factory, my Anton will have its own office with the carpet, and I love lying on the carpet. I will then be considered the main guard dog guarding the host itself, and other dogs will rapidly run along factory walls, reminding the attackers about themselves loud lare.
Igor. I wonder how would you behave this time?
Anton. This time we would have a spacious room, where new sewing machines would be installed. They would be enough to organize work in two shifts, and to the third shift to carry out the prevention of equipment. It would not have to clutter the passages of materials, they would be kept in special premises.
Igor. In other words, are you free now from the conditions of a short period and live according to the laws of a long period?
Anton. Now I am all on the shoulder!
Barbos. Yes, Bogatyr, Real Bogatyr! You can say h Anton Muromets.
Igor. But still, can you expect that the consolidation of production in the long period always leads to an increase in resource performance?
Barbos. Not last place in our success played specialization of each watchdog dog.
Igor. In this case, the example of Adam Smith often leads. If the pin had to make from beginning to end to one person, then it would not produce more than one per day, and if it is divided into the manufacturing process on 18 consecutive operations, then an increase in the scale of 18 times gave the opportunity to produce per day per employee 4800 pins per day.
Anton. In my workshop, too, I will share the work of a swarie motorist into several consecutive operations, and I hope this will lead to an increase in gathering.
Igor. So this is the most important law of production in a long period?
Anton. Do not hurry, Igor. After all, I said that it happens first, and then, when the company becomes too large, it becomes difficult to manage.
Igor. Understood. So it is possible that if you increase the resources no longer three, but six times, then the volume of production will increase only five times?
Anton. Very can be. In this case, we will encounter with descending returns from scale.
Barbos. We have never had a giant, because no wonder my owner loves to repeat:
UVE Well, in moderation, everything is good, that in moderation! F
Production function
Production cannot create products from nothing. The production process is associated with the consumption of various resources. Resources include all that is necessary for production activities - and raw materials, and energy, and labor, and equipment, and space.
In order to describe the behavior of the firm, you need to know how much product it can produce using resources in certain volumes. We will proceed from the assumption that the company produces a homogeneous product, the amount of which is measured in natural units - tons, pieces, meters, etc. The dependence of the amount of product that can produce a company, from the cost of resource costs received the name of the production function.
But the company can in different ways to carry out the production process using different technological methods, various options for organizing production, so that the amount of product obtained with the same resource costs may be different. The executives of the company must reject the production options that give a smaller product output if you can get a greater output with the same costs of each type of resource. In the same way, they must reject the options that require high costs at least one resource without increasing the product output and reducing the costs of other resources. Options deviated for these considerations are the name of technically ineffective.
Suppose your firm produces refrigerators. For the manufacture of the case you need to cut the sheet iron. Depending on how the standard iron sheet is labeled and uncredited, it can be cut out more or less details from it; Accordingly, it will take less or more standard iron sheets for the manufacture of a certain amount of refrigerators. In this case, the consumption of all other materials, labor, equipment, electricity will remain unchanged. This option of production, which can be improved by more rational iron cutting, should be declared technically ineffective and rejected.
Technically, the production options are technically effective, which cannot be improved by an increase in the production of the product without increasing resource consumption, nor a reduction in the cost of any resource without reducing the issue and without increasing the costs of other resources. The production function takes into account only technically effective options. Its value is the largest amount of product that can produce an enterprise in these resource consumption volumes.
Consider at the beginning the simplest case: the company produces the only type of product and consumes the only form of the resource. An example of such a production is quite difficult to find in reality. Even if we consider an enterprise providing services at home from customers without the use of any equipment and materials (massage, tutoring) and spending only the work of workers, we would have to assume that employees bypass customers on foot (without using transport services) and agree with clients without help mail and phone.
So, the enterprise, spending the resource in the amount of x, can produce a product in the quantity q.
Production functionsets the relationship between these values. We note that here, as in other lectures, all volumetric values \u200b\u200bare the values \u200b\u200bof the flow type: the amount of resource costs is measured by the number of resource units per unit of time, and the volume of production - the amount of product units per unit of time.
In fig. 1 shows a graph of a production function for the case under consideration. All points lying on the graph correspond to technically effective options, in particular, the points A and V. The point C corresponds to ineffective, and the D - the unattainable option.
Fig. 1. Production function in case of a single resource
The production function of the form (1), which establishes the dependence of the production volume from the amount of the cost of the only resource, can be used not only for illustrative purposes. It is also useful and then when the consumption of only one resource can change, and the costs of all other resources for one reason or another should be considered as fixed. In these cases, interest is the dependence of the production volume from the costs of a single alternating factor.
A much greater diversity appears when considering the production function, depending on the volume of two resources consumed:
q \u003d f (x1, x2) (2)
An analysis of such functions makes it easy to move to a common case when the amount of resources can be any. In addition, the production functions of two arguments are widely used in practice, when the researcher is interested in the dependence of the production volume of the product from the most important factors - labor costs (L) and capital (K):
q \u003d F (L, K). (3)
The graph of the function of two variables is impossible to portray on the plane. The production function of the form (2) can be represented in the three-dimensional decartular space, the two coordinates of which (x1 and x2) are deposited on the horizontal axes and correspond to the costs of resources, and the third (q) is postponed on the vertical axis and corresponds to the production of the product (Fig. 2). The graph of the production function serves the surface of the "hill", increasing with the growth of each of the coordinates X1 and X2. Building in Fig. 1 In this case, it can be considered as a vertical section of the "hill" by the plane parallel to the X1 axis and the corresponding fixed value of the second coordinate x2 \u003d x * 2.
Fig. 2. Production function in case of two resources
The horizontal section of the "hill" combines the production options characterized by a fixed release of the product Q \u003d Q * with various combinations of the cost of the first and second resources. If the horizontal cross section of the "hill" is depicted separately on the plane with the coordinates X1 and X2, it turns out a curve that combines such combinations of costs of resources that allow this fixed product output (Fig. 3). Such a curve was called ockevanate of the production function (from Greek. ISOZ is the same and lat. Quantum - how much).
Fig. 3. Isokvanta production function
Suppose the production function describes the production of products depending on the cost of labor and capital. The same amount of products can be obtained from various combinations of the costs of these resources. You can use a small amount of machines (i.e., to do with low capital costs), but it will have to spend a large amount of labor; You can, on the contrary, mechanize certain operations, increase the number of cars and due to this reduce the cost of labor. If, with all such combinations, the greatest possible amount of issue remains constant, then these combinations are depicted by points lying on the same isoquate.
Fixing the volume of product output at another level, we get another isoquate the same production function. After performing a series of horizontal cuts at various heights, we obtain the so-called omokvant card (Fig. 4) - the most common graphical representation of the production function from two arguments. It is similar to the geographical map on which the terrain is depicted by horizontals (otherwise - with gypsums) - lines connecting points lying at the same height.
Fig. 4. Map of Isokvant
It is easy to note that the production function is largely similar to the usefulness function in the theory of consumption, isochvanta - on the curve of indifference, the map isookvant - on the map of indifference. Later we make sure that the properties and characteristics of the production function have many analogies in the theory of consumption. And the point here is not in simple similarity. In relation to resources, the company behaves as a consumer, and the production function characterizes this particular direction of production - production as consumption. A particular set of resources is useful for the production of so far, since it allows you to get the appropriate volume of product output. It can be said that the values \u200b\u200bof the production function express their utility to produce the corresponding set of resources. In contrast to consumer utility, this "utility" has a completely defined quantitative measure - it is determined by the volume of products manufactured.
The fact that the values \u200b\u200bof production functions relate to technically effective options and characterize the largest production of products in the consumption of this set of resources, also has an analogy in consumption theory. The consumer can use the purchased benefits in different ways. The utility of the purchased set of benefits is determined in this way of their use, in which the consumer gets the most satisfaction.
However, with all marked accuracy of consumer utility and "utility" expressed by the values \u200b\u200bof the production function, these are completely different concepts. The consumer itself, proceeding only from his own preferences, determines how much the product is useful for him, buying or rejecting it. The set of production resources will ultimately be useful to the extent that the product is approved by the consumer, which is manufactured using these resources.
Since the production function is inherent in the most common properties of the utility function, we can further consider its main properties, without repeating the detailed reasoning given in the second part.
We assume that an increase in the cost of one of the resources at a constant cost of another allows you to increase product yield. This means that the production function is the increasing function of each of its arguments. Through each point of the plane of resources with coordinates X1, X2 is the only isochvant. All isopvants have a negative slope. Isokvanta, which meets the greater product output, is to the right and more isochvants for less output. Finally, all isoquants will be considered convex in the direction of the beginning of the coordinates.
In fig. 5 depicts some cards of okvant characterizing various situations arising from the production consumption of two resources. Fig. 5, and meets the absolute interchange of resources. In the case shown in Fig. 5, B, the first resource can be fully replaced by the second: Points of isokvant located on the X2 axis show the number of second resource, which allows you to get a particular product output without using the first resource. Using the first resource allows you to reduce the cost of the second, but it is impossible to completely replace the second resource. Fig. 5, B depicts a situation in which both resources are needed and none of them can be fully replaced by another. Finally, the case presented in Fig. 5, g, characterized by the absolute complementarity of resources.
Fig. 5. Examples of Maps Ozokvant
The production function, depending on two arguments, has a pretty visual representation and is relatively simple for calculations. It should be noted that the economies use the production functions of various objects - enterprises, industries, national and world economy. Most often it is the functions of the form (3); Sometimes the third argument is added - the costs of natural resources (N):
It makes sense if the number of natural resources involved in production activities is variable.
In applied economic studies and in economic theory, production functions of different types are used. Their features and differences will be discussed in Section 3. In applied calculations, the requirements of practical computability are caused by a small number of factors, and these factors are considered consolidated - "work" without a division by professions and qualifications, "capital" without taking into account its concrete composition, etc. D. Theoretical analysis of production can be distinguished from the difficulties of practical computability.
The theoretical approach requires every kind of resource to consider absolutely uniform. The raw materials of various varieties should be considered as various types of resources, just like machines of various brands or work, differing in professional and qualifying grounds. Thus, the production function used in theory is a function of a large number of arguments:
q \u003d F (x1, x2, ..., xn). (four)
The same approach was used in the theory of consumption, where the number of types of goods consumed was not limited.
All that was previously said about the production function of two arguments can be transferred to the function of the form (4), of course, with reservations relating to dimension. Isokvants function (4) are not flat curves, but n-dimensional surfaces. Nevertheless, we will continue to use "flat isopvants" - and for illustrative purposes, and as a convenient means of analysis in cases where the cost of two resources are variables, and the rest are considered fixed.
Lecture 22. Production Theory
Production characteristics
Performance
A number of important characteristics of production are associated with production function. First of all, it includes performance indicators (productivity) of resources, characterizing the volume of the product produced, per unit of the resource spent each type. The average product of the i-that resource is called the ratio of the volume of products q to the volume of use of this resource X1:
If, for example, an enterprise produces 5 thousand products per month, and monthly labor costs are 25 thousand hours, the average product of labor is 5000/25 000 \u003d 0.2 ed. / H.
This value says nothing about how the product output will change when the cost of this resource changes. If the costs of the i-Togo of the resource increased by magnitude, and as a result of this, the production of the product will increase by magnitude (with constant costs of other resources), then the increase in the cost of the cost of this resource is determined by the ratio. The limit of this relationship with seeking zero, received the name of the limit product of this resource:
If in the conditions of the previous example, the number of employees will increase slightly, so the cost of labor per month will amount to 26 thousand hours, the fleet park, the costs of raw materials, energy and the like will remain the same and the monthly release of products will be 5,100 products, the maximum product is approximately ( 5100-5000) / (26 000-25 000) \u003d 0.1 ed. / H (approximately because increments are not infinitely small). The limit product is equal to a private derivative of production function in terms of costs of the relevant resource:
On the type of graph. 1, showing the dependence of production from the volume of consumption of this resource under constant volumes of other resources ("vertical section"), the magnitude of MP corresponds to the angular coefficient of the chart (i.e. the angular coefficient of tangent).
And the medium, and the limit product is not constant, they change with changes in all resources. The general pattern that various production was subordinated to, received the name of the law of a decreasing limit product: with an increase in the amount of costs of any resource at a constant level of costs of other resources, the limit product of this resource is reduced.
What is the reason for the decline in the limit product? Imagine an enterprise well equipped with various equipment that has sufficient area for the implementation of the production process provided by raw materials and various materials, but with a small number of workers. Against the background of other resources, the workforce is a kind of bottleneck, and, it is necessary to assume that an additional employee will be used very rationally. Accordingly, product growth may be significant. If, while maintaining the previous levels of all other resources, the number of workers will be more, the work of an additional employee will not be so good enough tool, mechanisms, it may be enough space for work, etc. Under these conditions, the attraction of an additional employee will not cause a large Production growth. The more employees, the smaller the production increase due to the involvement of an additional employee.
Similarly, the limit product of any resource changes. Loss of the limiting product illustrates Fig. 6, which presents a graph of the production function under the assumption that only one factor is variable. The dependence of the product volume from the cost of the resource is expressed concave (convex up) function.
Fig. 6. Loss of the limiting product
Some authors formulate the law of a decreasing limit product otherwise: if the amount of resource consumption exceeds some level, then with further increase in the consumption of this resource, its limit product is reduced. At the same time, an increase in the limit product is allowed under small amounts of resource consumption.
In addition, the technical characteristics of many types of resources are such that, with excessive volumes of their use, the product output does not increase, and decreases, i.e. the limit product is negative. Taking into account these effects, the graph of the production function acquires the form of a curve in Fig. 7, on which three sections are distinguished:
1 - the limit product increases, the function of convex;
2 - the limit product decreases, the function is concave;
3 - the limit product is negative, the function decreases.
Fig. 7. Three parts of the production function
The points falling on the site 3 correspond to technically inefficient production options and therefore do not represent interest. The corresponding area of \u200b\u200bresource costs was called uneconomical. The economic region includes the area of \u200b\u200bchange in resource costs, where with the increase in the cost of the resource, the product is growing. In fig. 7 These are sections 1 and 2.
But we will consider the law of a decreasing limit product in the first form, i.e. we will consider the limiting product decreasing with any costs of the resource (within the economic field).
Resource replacement
As already noted in Section 1, the same amount of the product can be obtained at various combinations of resources, and isoquered by the production function connects the points corresponding to such combinations. When switching from one point isochvants to another point of the same isochvant, there is a decrease in the costs of one resource with a simultaneous increase in the cost of another, so that this production remains unchanged, that is, there is a replacement of one resource to others.
We assume that production consumes two types of resources. The second resource replaceability measure is the first to characterize the amount of the second resource, compensating for the change in the number of the first resource per unit when the isoquance is moving. This value is called the technical replacement rate and is -DX2 / DX1 (Fig. 8). The "minus" sign is associated with the fact that increments and have opposite signs. The magnitude of the replacement rate depends on the magnitude of increment; To get rid of this circumstance, use the limiting norm of technical replacement:
The limiting rate of technical replacement is associated with the limit products of both resources. Turn to Fig. 8. Transition from point A to point in performed in two steps. In the first step, we will increase the number of the first resource; In this case, the production of products will increase slightly and we will move with isochvants corresponding to the release of q, to \u200b\u200ba point with lying on isochvanta. Considering the increment to small, we can increment to approximate equality
Fig. 8. Responsive resources
In the second step, we reduce the amount of the second resource and return to the original isochvant. Negative increment of the release at the same time
Comparison of the last two equalities leads to the ratio
- (DX2 / DX1) \u003d MP1 / MP2.
In the limit, when both increments seek to zero, we get
MRTS \u003d MP1 / MP2. (five)
The graphically limit rate of technical replacement is depicted with the opposite sign of the angular tilt coefficient of tangent at this point is isochvants to the abscissa axis.
When driving along isochvants from left to right, the angle of tilt the tangent decreases is a consequence of the bulge of the region located above the isoquate. The limit rate of technical replacement behaves in the same way as the replacement rate in consumption.
We considered the case when the company consumed only two types of resources. The results obtained are easily transferred to the common, N-dimensional case. Suppose we are interested in the substience of the J-Togo of the I-Tim resource. We must fix the levels of all other resources and view as variables only the selected pair. The substitution of interest to us corresponds to the movement along the "flat isopvanta" with the coordinates of XI, xj. All the above considerations remain in force, and we come to the result:
MRTSIJ \u003d MPI / MPJ. (6)
Optimal combination of resources
The ability to get a certain product output in different ways, or, otherwise, the mutual resource-permanence of resources, makes a natural question: what is the combination of resources most of the enterprises in the interests of the enterprise?
The company buys resources in the markets of raw materials, labor, energy, etc. We will assume that the price of PI, which is bought by an I-th resource, does not depend on the volume of purchase. The costs of the company for the purchase of resources in a two-dimensional case are described by the expression
Many combinations of resources, the cost of the purchase of which is the same, graphically portrayed, direct - analogue of the budget line in the theory of consumption. In the theory of production, this line is called an amusement (from the English. Cost - costs). Its slope is determined by the price ratio of P1 / P2.
The postulate on the rationality of behavior underlying the theoretical economy applies to all business entities. The company, speaking in resource markets as a rational consumer and carrying costs, is interested in acquiring the most useful combination of resources, i.e., combinations of resources giving the greatest product output. The task of determining the best in this sense of the combination of resources is completely similar to the task of finding consumer optimum. And at the point of optimum, as we know, the budget line concerns the indifference curve; Accordingly, at a point depicting an optimal combination of resources, an ockevanation should be placed (Fig. 9, a). At this point MRTS (isochvanate tilt) and the ratio of P1 / P2 prices (the slope of the isokosti) coincide. So, for the optimal combination of resources, equality is performed
or, if taken into account the equality (5) for the limiting norm of technical replacement,
MP1 / MP2. \u003d P1 / P2. (7)
The values \u200b\u200bof the limit products of each of the resources with their optimal combination should be proportional to their prices.
Fig. 9. Optimal resource combination
Suppose that with the prevailing volumes of resource consumption MP1 \u003d 0.1, MP2 \u003d 0.2, and the prices p1 \u003d 100, p2 \u003d 300. In this case, MP1 / MP2 \u003d 1/2, P1 / P2 \u003d L / 3, so that this combination is not optimal. Increasing the consumption of the first resource (at the same time MP1 decreases) and reducing the consumption of the second (MP2 will increase), it is possible to complete the condition (7). So, the consumption of the first resource was insufficient, the second is redundant.
We could solve the best combination of resources. The firm producing a product in quantity q is interested in choosing this option of production that would allow this product output with the smallest costs for the purchase of resources. The task is reduced to finding a given point of such a point that would be located on the lowest isokoste. And in this case, the desired combination is depicted by a point of touch of isochvants and isokosy (Fig. 9, b), and a relation (7) should be performed for it.
In contrast to the consumer, the income of which is assumed to be specified, for the company neither the costs of resources, nor the release of products are given values. Both are the result of an agreed choice, taking into account the situation in the product market. However, knowing resource prices, we can allocate cost-effective options for the production process. We will call the option cost-effective if the company cannot increase the product issue without increasing the costs of resources and cannot reduce costs without rehabilitation. In fig. 10. The point E corresponds to the effective, and points A and B - ineffective variants: option is more expensive than E, with the same product output; An option in corresponds to the same costs as the variant E, but the product output is less here. Proportionality of limiting products to resource prices We can now interpret as a condition for the economic efficiency of the production option.
Fig. 10. Economically efficient and economically inefficient production options
This output is also easily transferred to a N-dimensional case. If the combination of resources (x1, x2, ..., xn) is cost-effective, then any pair (XI, XJ) of PEURES must satisfy the condition of the form (7), i.e. equality
MPI / MPJ \u003d PI / PJ
must be performed for any pair of resources. And this is possible if the utmost products of all resources are proportional to the prices:
MP1: MP2 :: MPN \u003d P1: P2 :: PN. (eight)
Considering the prices of resources are fixed, take on each isoquer the most "cheap" point (or on each isokoste - the most "productive") and connect their curve. This curve combines options effective in these resource prices. By deciding on the production volume, the company will remain on this curve. It is called the optimal growth curve (Fig. 11). The above claims are valid under the assumption that the firm may freely choose the volume of all resources. However, the enterprise may shortly change the consumption of materials in a short time, it can take to work the required number of employees, but cannot be as quickly changed, for example, production areas. In this regard, the behavior of the company in the short and long periods is distinguished: in a long period, the volumes of all resources can be changed, in a short one - only some.
Fig. 11. Grosty curve
Let from two resources consumed by the enterprise, the first may vary in a short period, and the second - only in a long time, in the short one takes the fixed value x2 \u003d B. This situation illustrates Fig. 12. In a long period, the company can choose any combination of resources within the positive quadrant of the X1x2 plane, and in a short one on the beam of the aircraft.
Fig. 12. Changes in a long time to short periods
In general, all resources can be divided into changing in a short period ("mobile") and changing only in a long period. In a short period, only the volume of "mobile" resources can be rationally, so that the condition of economic efficiency is the proportion of the form (8) - in the short period covers only these types of resources. An option effective in a short period may be ineffective in long.
Return from scale
Suppose that the firm wants to increase the production of the product twice. Will it reaches this purpose by doubleing labor costs, equipment park, production area, word, volumes of all resources used? Or can this goal be achieved not so much increase in resource costs? Or, on the contrary, for this purpose, resource consumption should be increased more than twice? The answer to such questions gives the characteristic of production, called the name of the scale.
Denote by X01, X02 the volume of consumption by resource firm in the initial state; The amount of product produced is equal to
q0 \u003d f (x01, x02)
Let the company now change the scale of resource consumption, while maintaining the proportion between their quantities: X`1 \u003d KX01, X`2 \u003d KX01.
New product production equal
q` \u003d F (KX01, KX02).
Cases are possible when the production of the product changes in the same proportion as the consumption of resources, i.e. q` \u003d kq0. It is said about the constant return on scale.
But may also be otherwise. For example, an increase in resource consumption by 2 times will cause an increase in release by 2.5 times. If q`\u003e kq0, talking about increasing returns from scale. If Q`.
Fig. 13. Proportional change in resource consumption
On the map of Izokvant, the proportional change in the resource flow is depicted by the movement along the ray coming out from the start of the coordinates (Fig. 13). Increasing consumption in K times corresponds to an increase in the distance from the origin of the coordinates. Isokvants crossing OA ray at various points show how when moving along the ray, the volume of product release changes. Choosing a distance from the beginning of the coordinates to the starting point A0, you can construct a graph of the volume of release, depending on the large-scale coefficient k. Fig. 14 illustrates a constant (A), increasing (b) and decreasing (c) returns from scale.
Fig. 14. Permanent (a), increasing (b) and descending (c) returns from scale
Thus, if an enterprise wants to increase the production of the product in the K times, keeping the proportion between the amounts of resource consumption, then it will have to increase the amount of consumption of each resource:
In k times if the return from the scale is constant;
Less than in k times if the return from scale increases;
More than k times if the return on scale decreases.
If the scale of production can vary widely, the nature of the return on scale does not remain the same in the entire range of changes. In order for the firm to function, some minimum level of resource consumption is required - constant costs. With small volumes of production, the return on scale turns out to be increasing: since the amount of constant costs remains unchanged, a significant increase in the production of the product can be achieved with a relatively small increase in the total cost of resources. For large volumes, the return on scale turns out to be decreasing due to the decline in the limit product of each resource. In addition to other circumstances, decreasing returns from a scale at large enterprises is related to the complication of production management, violations of coordination of various production links, etc. The characteristic curve is presented in Fig. 15. The site to the left of the point B is characterized by increasing returns from the scale, to the right - decreasing. In the neighborhood of the point in return from scale is approximately constant.
Fig. 15. Different returns from the scale in different parts of the curve
Lecture 22. Production Theory
Technical Progress and Production Function
As already mentioned, the production function describes the technical side of production. At the same time, all the considerations given in sections 1 and 2 proceeded from the invariance of the technical level of production: replacing one resource to others, changes in the scale of production, etc., - all these changes were transitions from one production option to another within a variety of production capabilities, and This set itself was assumed unchanged; The production function was also unchanged.
At the same time, changes in the real life of the company also occur: new materials are invented, old equipment is replaced by more perfect, employees acquire new knowledge, etc. In addition, products can be improved. However, we will not consider such changes here: the theory suggests that the product is ideally homogeneous, identical to itself, and an improved product is another product. We will restrict ourselves to considering only such changes in production that affect only resource costs and do not affect the quality of the product.
How does the production function reflect such changes in production that are characterized as technical progress?
In order to further avoid ambiguity, initially eliminate changes that do not relate to technical progress.
Suppose that we are considering a production function that has only two factors (L) and capital (k) with its arguments. One of the isopvant of such a production function is shown in Fig. 16. Suppose that the firm, remaining within the source technical capabilities, mechanizes production, increasing the number of equipment (i.e., laid down in the production of capital) and released some of the amount of labor; At the same time, it retains the former production of products. In fig. 16 This change corresponds to the transition by isochvante from the point A to the point. Is it possible to consider such a change in the manifestation of technical progress? Of course, no: we stayed within the previous production capabilities, there was only a replacement of one resource to others.Fig. 16. Shift isocavated production function as a result of technical progress
The situation would be completely different if the company, retaining the production of products, could reduce labor costs without increasing capital costs or, on the contrary, could reduce capital costs without reducing labor costs, i.e., could move from point A or in Point with the next and left old isochvants. Within the initial production capabilities, such a transition could not come true: at a point with a production function, it took less value than on an isoquance passing through points A and B. means a production function was supposed to change. At the same time, an isochvant corresponding to the original production of products must move to the left and go through the point S.
So, technical progress is the emergence of new production capabilities. At the same time, the previous opportunities do not disappear. The invention of new materials does not exclude the use of traditional. Thus, the introduction of Capron as a structural material in mechanical engineering did not rule out the use of steel - in each case, it is necessary to choose more efficient from available materials. Getting new knowledge does not mean the immediate oblivion of the whole old one. Thus, technical progress means expanding the set of production capabilities - the "hill", which was discussed in section 1, "throws up an additional layer" (Fig. 17). In this case, options that in the original set were technically effective, become ineffective, and the production function should take into account new effective options.
Fig. 17. Shift graphics production result of technical progress
The point of view described here on how changes in production function reflect technical progress, gained widespread and development. Based on the intensity of technical progress; The change in the inclination of the omokvant during their shift allows you to classify the types of technical progress, distinguishing the labor-saving, capitalization, and nature-saving direction. However, the question arises: why a certain combination of resources "to progress" allowed to obtain a maximum of 100 units of the product, and "after progress" the same combination of the same resources allows you to get, say, 120 pieces of product? If we take into account all the resources used and did not miss anything, what power did an additional 20 product units spawned?
This question can be given such an answer: the number of resources remained the same, but their quality has changed, so that "after progress" is not quite the same resources that were "before". However, such an explanation is poorly consistent with those assumptions about the production function, which were introduced in section 1: One of them came down to the fact that each argument of the production function corresponds to an absolutely homogeneous resource and that, consequently, the resource of other quality is a different resource.
Here we must return to the fact that casually was mentioned in Section 1: The term "production function" indicate the functions of at least two different types. One type covers the functions that were the subject of discussion in the first two sections. We will call them theoretical. They are a convenient means of developing the theory, but are not suitable for calculations: uniform resources are not just much, it is almost impossible to even make their full list. For example, a certain change in the properties of some material is already "this" resource "other".
To another type includes production functions that can be called settlement. They can be actually built according to the observed data and then use for planned, forecast and other calculations. Each argument of the estimated production function corresponds to a non-homogeneous, but aggregated resource. The degree, aggregation can be different - and very enlarged ("work", "capital"), and more detailed ("main workers", "specialists", "buildings", "machines", etc.) - depending on Calculation goals and its security statistical information.
Note that this applies not only to production functions, but also to other models used in the economy: each of them can have different options that correspond to different levels of abstraction. Theoretical (or, as they also call, conceptual) models are usually too cumbersome for numerical implementation and also require a practically inaccessible amount of numerical data. Estimated models suggest an enlarged description of the phenomena and are not accustomed in terms of the requirements of strict theory.
Everything that was mentioned above about the technical progress and its presentation in the language of production functions was related to the functions of aggregated factors. Only in such cases can we talk about increasing the productivity of the factor due to changes in its quality.
In the theoretical model, the change in the quality of the resource is the emergence of a new type of resource. If the initial production function had its arguments, the volume of consumption of resources P of species, i.e., was a function of the variables, then the appearance of a new type of resource requires the use of a new production function depending on N 1 of the argument. Thus, for theoretical production function, technical progress means an increase in the dimension of the definition area. The initial production function F (x1, x2, ..., xn) does not reflect a new situation; The new production function F * (x1, x2, ..., xn, xn 1) reflects the initial situation if you put xn 1 \u003d 0. The relationship between production functions is described by equality
F (x1, x2, ..., xn) \u003d f * (x1, x2, ..., xn, 0).
The situation is illustrated in Fig. 18. Let the firm used only the first type of resource, and the production function had a form F (x1); Its isochvants - marked points on the X1 axis. Technical progress led to the emergence of a second resource. Now the production function has the form f * (x1, x2), and its isochvants are curves on the plane x1 x2.
Fig. 18. Maps areookvant: on the X1 axis (before the appearance of the second resource) and on the x1 x2 plane (after its appearance)
Note that such a presentation of technical progress is similar to the description of short and long periods using production functions. A new kind of resource at the same time is similar to the factor fixed in the short period; The only feature is that it is fixed on a zero level (Wed. Fig. 18 Figure 12). Therefore, the behavior of the firm in the conditions of technical progress is sometimes called behavior in the superconduct.
The emergence of a new type of resource in itself does not mean that the firm will use it. If its price is too high (Izza C1 in Fig. 19), the task of selecting resources will have an angular solution (point A1) and the firm will refuse to use a new type of resource. When the price is reduced, the company will begin to apply along with the traditional type (C2 isolation and point A2). If the traditional view can be fully replaced by the new and the price of a new kind of resource is quite low, the task of choice will have the opposite angular solution (C3 and Point A3) - the traditional view of the resource will be completely displaced new.
Fig. 19. Changing the choice of resources while reducing the price of the new resource: the refusal of the new (A1), the use of the new one with the traditional (A2) and the displacement of the traditional new (A3).
Lecture 22. Production Theory
Strokes to the portrait of the production function
The current theory of production has developed at the end of the XIX-early XX century. In explicit form, the production function was presented in 1890. English Mathematics A. Berry (Berry A. Theory of Distribution // British Association of Advancement Of Science: Report of the 60th Meeting, 1890. London, 1893. P. 923- 924), who helped A. Marshall in preparing a mathematical application to its "principles of economic science." However, attempts to establish the dependence of the issue on the number of resources used and give it some analytical expression took place long before. Get acquainted with some of them.
Mark Terency Warron against Mark Portion of Katon
In the treatise "On agriculture" a famous Roman writer and statesman Mark Portia Caton (234-149 BC. Er) describes two exemplary villas (farms): olive villa and vineyard (winemaking). Among the set of recommendations for their arrangement, there are also such: for the processing of olive grove in 240 yggers (1 Yuger is about 3 thousand m2) Caton determines the required number of slaves in 13 people, including the veil (managing) and a viscix (keystone), and for processing Vineyard at 100 Ugra This number is 16 people.
The norms proposed by Katon caused objections to Mark Terentation of Women (116-27. BC. E.), as well as the "writer on farming". They are set forth in his treatise "about agriculture". Varon does not agree with the assumption of Katon that there is a direct proportional dependence between the area of \u200b\u200bthe site and the number of slaves necessary for its processing. Women's argument: For the total number of slaves, Caton should not have included a vacancy and a veil, i.e. management costs (on the maintenance of the manager and the keystitch), because these costs are constant and do not depend on the area area. "Consequently, it concludes Varon," only the number of employees and migrants of bulls should be reduced in proportion to a decrease in or increasing the size of the estate. " But this, provided that "if the ground is homogeneous." If the natural conditions of individual sites are different, then the number of slaves will be different.
I saw the Varon and the integer problem. He said that Caton offered a measure of not uniform and not normal - 240 yugers (the norm is centuries in 200 yugers). As, "according to his instruction, I could take away the sixth part of the 13 slaves or, leaving aside the Vilik and the Vilik, how could I take a sixth part of 11 slaves?" (Antique production method in sources. L., 1933. P. 22).
Thus, Varon is essentially concluded that it is necessary to compare the costs and issuing as increments of the corresponding variables, although the concept of the variable was probably known to him.
N. G. Chernyshevsky
In well-known additions to the translation of the "grounds for political economy" by J. S. Mill, made in 1859 for the magazine "Contemporary", N. G. Chernyshevsky so determined the task of economic science; "Decaying the product on the shares corresponding to different elements of production, it should look for which the combination of these elements and the share gives the highest practical result. What is the task here - it is clear to everyone: to find it, with what combination of elements of production This number of productive forces gives the largest product "(Chernyshevsky N. G. Essays from political economy (by Mille) // Evim. Ekon. Works: in 3 t. M., 1949. T. 3, Part 2. P. 178). Moreover, he suggested both the "formula of dependence of production from two factors" (Chernyshevsky N. G. Grounding of the political economy of John Stewart Mill // Epos. Works: in 3 t. M., 1948. T. 3, h . 1. P. 306-307), or, as we would say now, the production function of a certain species.
"Formula" proposed by Chernyshevsky, simple:
where a is "productive guns"; In - "worker"; C - "The amount of product of famous qualities produced by the daily labor of this employee through these guns." The coefficients at A, B and C are characterized by the "degree of dignity of" tools and employees and "the success of production", respectively. However, since the amount of coefficients at A and B characterizes "this number of forces that can be facing production", we have the right to consider them as the number of "guns" and "workers" rather than the indicators of the "degree of dignity" of those and others.
N. G. Chernyshevsky leads a numerical illustration of its formula:
......................
10A 10B \u003d 100C
......................
Obviously, the "production function" Chernyshevsky is a homogeneous function of the second degree. If we increase the number of "guns" and "workers" in K times, then
C * \u003d kakb \u003d k2ab.
Consequently, Chernyshevsky production is characterized by an increasing return on scale.
Isokvanta function (9) has the type of equanka hyperbola on schedule. Map isokvant is presented in Fig. 20. The procedure for technical replacement by the "workers' instruments" with a constant release falls (see table).
Fig. 20. Map of Isokvant of the production function N. G. Chernyshevsky for various values \u200b\u200bwith
Technical replacement rate for function (9) at C \u003d 10
10,005,003,332,502,001,661,431,251,111,00 12345678910 -5,001,600,830,500,340,230,180,140,11
The relationship between the amounts of resources used and the volume of issue Marx called the technical structure of capital. Recall that he distinguished the technical, value and organic structure. If the first is determined by the ratio between the means of production and necessary for their use by the amount of labor force, and the second is the attitude in which the capital decays the cost of production and the cost of labor, then the organic structure of capital Marx called its value structure, "since it is determined by its The technical structure and reflects the changes in the technical structure "(Marx K., Engels F. Op. 2nd ed. T. 23. P. 626).
Distinguishing technical and organic structure, Marx wrote:
"The first attitude rests on the technical basis and at the well-known level of development of productive forces can be considered as given. Requires a certain mass of the workforce, represented by a certain number of workers to produce a certain mass of the product, for example, within one day, and, therefore, what is already It goes without saying, to move, to move, consume a productively defined mass of the means of production, machinery, raw materials, etc. ... The attitude is very different in various industries, often even in various divisions of the same industry, Although, on the other hand, in very distant industries from each other, it can randomly be completely or almost the same "(ibid. T. 25, part 1. P. 157-158).
It is enough to compare the reduced definition of the technical structure of capital with modern definitions of the production function to make sure their logical identity. This gives reason to use as a measure of the technical structure not by the mass masses (k) and labor (L), and private differentials of the simplest industrial function Q \u003d F (k, L):
[(DQ / DK) / (DQ / DL)] (K / L) (10)
If you designate the price of the capital of PK, and the PL bob's price and equate the technical and value structure, we get
[(DQ / DL)] / (DQ / DL)] (K / L) \u003d (PK / PL) (K / L) (11)
This means that the value of capital can be viewed as its organic structure only if the prices of resources are proportional to their limiting performance:
PK / (DQ / DK) \u003d PL / (DQ / DL). (12)
Since equality (12) is easily given to the condition of the optimal combination of resources (7).
N. Ogronovich
In 1871, a small book with a curious name "New definition of labor and capital was published in St. Petersburg. The greatest value of one or another, the greatest value of them in social life and the greatest production, or a new science on the concentration of atoms, cells , individuals, farms in productive areas with the appointment of higher mathematics. " In essence, it was not even a book, but "the word from the author" to the future work that did not appear. The author of the book signed as follows: "N. Ogronovich (Kudeshev, Hu-Dash for Mother. Pupil of Kiev University of St. Vladimir)."
Most likely, as well as the Book of Gossen (see Lecture 12, Section 3), this "Word" turned out to be not observed scientific circles. Meanwhile, it was formulated in it, the idea of \u200b\u200bproduction function was practically in modern form. N. Ogronovich writes: "The work of my" science on the concentration of atoms, individuals, farms "... will be the advantage not social, but political and economic, for the basis of the mathematical function, found to determine the production; from this function we can determine Maximum and Minimum functions, or the largest and smallest production of any organism of the individual, every organism of the farm and any other organism. Then the profit will be determined, which is nothing but the D-l. of this function ... then the value will be determined from this function any The productive force that is nothing more than profit, or as the D-L production of this productive force, multiplied by the number that will show how many times the productive force participated in the production of the total production at the moment. " With this function, Ogronovich wants in his future book to "determine the value of labor, the value of working capital, the value of the fixed capital and the value of nature forces."
At the same time, N. Ogronovich affects the issue of technical progress: "... the progress of production requires the capital more and more irrelevance and diversified ... I will prove that production will be the most insignificant to increase, if we increase work, increase The voltage of their muscles ... and on the contrary, our production will increase greatly if we increase the capital - both negotiable and the main and implemented. The increase in production requires an increase in capital and reduce the amount of labor. Reduce the amount of labor - it means to reduce the request for labor, and labor value will fall "(Ogronovich N. New definition of labor and capital. St. Petersburg, 1873. P. 3).
Thus, the pupil of Kiev University long before the works of P. Douglas came to the idea of \u200b\u200bthe production function (mathematical), expressing it verbally. But is the founders of the Austrian school of political economy did not make the same with the usefulness function?
Lecture 22. Production Theory
1. The production function of the company Q \u003d F (k, L) is set by the table. Prices of factors pk \u003d 30, pl \u003d 40 do not depend on the volumes of their consumption by the firm.
Performance values
35 40 45 50 55 60 65 70 75 80
1717982848687878888888824228
but. Build a graph of Q depending on the volume of variable resource L at fixed values \u200b\u200bK \u003d 35; 60; 80.
Build the graphs of the dependence Q on the volume of variable resource K at fixed values \u200b\u200bof L \u003d 100; 200; 300.
For all dependencies, analyze changes in the middle and limit product of the variable resource.
b. Build isokvants production functions for Q \u003d 100; 125; 150; 175; 200.
in. Build a company growth line at specified prices of factors.
The product and resources are assumed to be unlimitedly divisible, and the production function is continuous. Calculations and construction can be performed only approximately.
2. In the production of the product, four types of resources are used. In the vicinity of a certain combination; Their quantities are known some limitations of technical replacement: MRTS12 \u003d 0.5; MRTS13 \u003d 5; MRTS24 \u003d 0.1. Find the rest.
Ministry of Education and Science of the Russian Federation
Perm State National Research University
LECTURE NOTES
by discipline
Microeconomics
Teacher: Valneva Larisa Vasilyevna
Department of World Economy and Economic Theory
Topic 1. Introduction to Economic Theory 3
1. Development of the idea of \u200b\u200bthe subject of economic science. Specificity microeconomics 3.
2. Methods of economic theory 5
3. The problem of choice. Selection criteria 6.
4. Basic concepts of economic theory 7
5. Curve (border) of production capabilities 8
Topic 2. Market 10
1. Market. Market models. Market functioning conditions 10
2. Demand. The amount of demand. Law of demand. Determinants demand. Effect of replacement and effect of income 13
3. Offer. The magnitude of the proposal. Law of proposals. Independent determinants Proposals 14
4. Market mechanism. Market balance. Overproduction and deficiency 15
5. Elasticity: Direct and Cross 16
6. The practical significance of the theory of elasticity 20
Topic 3. Consumer behavior theory 22
1. Cardinal (quantitative) Consumer behavior theory. Equilibrium (optimal choice) of the consumer in the Cardinalist Concept 22
2. Ordinalist (ordinal) Consumer behavior theory 24
3. Consumer utility function. Map of curves of indifference and its properties. MRS. MRS and utmost utility products 25
4. Budget restriction and budget line 26
5. Optimal choice (equilibrium) of the consumer in the Ordinalist Concept 28
6. Consumer reaction to price consumption and income: model "price-consumption" model, building a demand curve, income-consumption model, Engel curves 29
Topic 4. Firm Theory 30
1. The essence of the company, the goals of the company. Profit and costs 30
2. Economic costs: external and internal. Normal profits. Accounting and Economic Profit 31
3. Costs in the short-term and long-term periods. Permanent, variables, total costs. Medium costs. Limit costs 32.
4. Conditions for the stay of the company in business and exit from it 33
Topic 5. Production Theory 34
Topic 6. Firm and industry in the market of perfect competition 36
1. Characteristics of competitive firms and industries 36
2. Condition for maximizing profits of a competitive company 36
3. "Profit paradox" 37
Topic 7. Monopoly. Price discrimination 38.
1. The essence of the monopoly. Basic features of pure monopoly 38
2. Overall revenue and limiting revenue in the monopoly market 40
3. Conditions for maximizing profits Simple monopoly 40
4. Public costs of monopoly power. Pareto efficiency 41
5. An indicator of monopoly (market) power. Lerner Index 43.
6. Price discrimination and its shape 43
7. The benefits of the monopoly authority: the natural monopoly and the problem of its regulation by the state 46
8. Antimonopoly legislation. 48.
Theme 8. Oligopoly. Dupolia models 48.
Topic 9. Resource Markets 50
Seminar 2 52.
Lesson 1 - 11/11/2013
Literature
Nureyev - "Microeconomics".
Pinka, Rubinfeld - "Microeconomics".
Topic 1. Introduction to economic theory
1. Development of the idea of \u200b\u200bthe subject of economic science. Specificity microeconomics
Economic science is the science that studies the behavior of people, it refers to the number of public sciences.
An object- The behavior of people in economic life, economic activity.
Ideas about the subject of economic science, i.e. What exactly is being studied in the behavior of people in the house. Activities changed.
The term "economy" arose in ancient Greece.
XENFONT (V-IVVV. T.N.E.) and Aristotle (IV. BC): economy- Science of the household ("Okos" - House, Nomos - Law).
Aristotle has a term "Hrematics"- The science of enrichment, the accumulation of wealth as an end in itself, as a worship of profits. This activity of a person is unworthy. Rostovism, trade.
Mercantilism
Mercantilism- Economic theory of early, young capitalism.
Capitalism begins to form in con. XV-NC.xVIVV. in sphere trade.
Mercalistists believed that economic science was engaged in issues essence of wealth, study Ways of increasing wealth. But the wealth is not a household, but states,society.
In the framework of mercantilism, the term arises, which for a long time consolidated as the name of economic science, - political Economy(State Life).
Mercitalests believed that wealtharisesin the field of exchange in the field of trade.
Wealth- this is gold moneyand silver.
In economic activity important rolemust play state.
School of Physicrafts
XVIIIV Francois Ken is the founder and the brightest representative. The doctor became interested in economic science in 60 years.
Wealth–product,agriculture, on the ground. "Simple Product".
Ken's first divided society into classes and showed how economic interaction is carried out between them.
Productive classes- associated with the Earth. Landowners, farmers.
Barren classes- All others: artisans, industrialists, merchants.
Economic theory of Adam Smith
Adam Smith, 1723-1790. "Study of the nature and causes of wealth of peoples." Wealth is studied, his ways of emergence and nature.
Smith called Father Economic liberalism: The state should not interfere in the economy, it regulates the "invisible hand of the market." So that the market can function, need economic freedomman I. private property. Man - Egoist, in economic activity he pursues his own interests. But Egoist reasonable: Freedom of a person is limited to the freedom of another person.
Smith is the founder labor theory of value. The problem of cost is the problem of proportions in which the goods are exchanged on another. Smith defined the cost due to difficulty, but did not decide with how difficulty: or those who are appointed to the production of goods, or work that is received in exchange for this product.
Marxism
XIX. - Karl Marx. It believed that political economy was a science of industrial or economic relations. They are the subject of political economy.
I brought to the logical completion of the labor theory of the value of Smith.
Cost- embodied in the goods abstract (what is inherent in all types of labor, energy costs)human work. Wealth is created laborOther resources are involved indirectly. This idea unfolded in the presentation of surplus value- The part of the cost generated by the work that the entrepreneur is assigned, the capitalist.
A new public and economic system will come to replace capitalism, in which the wealth of society will equally belong to everyone.
Marginalism, or the theory of utmost utility
Last third XIXV. The first one outlined the ideas of marzhinalism German economist German Gossen. More Representatives: Bow-Baberk, Austrian School.
On the base marginalismare built modern economic theories.
Cost- this is utility. The more useful the goods, the higher its cost. Absolutely useless thing is not good and can not become a commodity.
Paradox of water and diamondsissued Smith to stop at the idea of \u200b\u200bdetermining the cost of utility.
How did the marzhinalists solved him:
Different units of the same good have different utility for consumers.
The usefulness of each subsequent unit of good is lower than the usefulness of the previous unit of good.
At some reason, the benefit turns into antiboral.
Market value or costproduct is determined the utility of the last unit of goodsin this party of goods , those. having the lowest utility.
Suppose Farmer grows grain. He has 10 bags.
|
- these bags for yourself (very high utility) |
|
- on sowing the next year (the usefulness is already below) |
|
- for the production of alcohol (even below) |
|
- on the fodder parrot (low utility) |
If the farmer should exchange grain for coal, first of all it will sell the last bag (which is for the parrot). If crumbling, then the coal exchanges the bag for alcohol, i.e. Usefulness rises. If it is completely crumbling, you have to give grain to sowing. And if it is very bad, the grain will come to the market for yourself.
Consequently, in addition to utility, limitations plays a role, rarity. Water is relatively inexpensive, because it is a lot. Diamonds, a little diamonds, so they are expensive.
Gossen formulated 2 law - the laws of the Gossen.
Economic theory A. Marshall
At the end of the XIX. On the basis of marginalism there was a new economic concept. A. Marshall.
He changed the name of economic science. Prior to that was political economy. The work of Marshall is called "PrinciplesOfEConomics".
Economy - economic activity of the company.Economics- Economic science, theory.
Other economists: Walras, Pareto. They said that their desire - to turn economic science into the science of accurate, free from subjective evaluation judgments, the same as mathematics and physics.
Marshall noticed that business entities are individuals, groups of people, countries - faced limited resources, and resources have alternative ways of use, i.e. Can be used in different ways. And the needs tend to increase the property, and qualitatively. The starving dreams of a piece of bread. If he gets it, then a desire to have bread with butter appears. Then with caviar, etc.
Thingeconomic Science (Economics) - electionswho commit people in conditions limit resources, each of which has alternative ways to use, in order to satisfy increasingthe needs of individuals, various social groups and societies as a whole, both today and in the future.
Thing- Elections that make people in limited resources (so can be answered).
In the future, the science of Marshall began to be called microeconomic.
In the 30s.XX in. J. M. Keynes became the foundermacroeconomics . He believed that the state should interfere in the economy.
Foundermonetarism (70s.XX C.) - Milton Friedman. Believed that the state should not interfere in the economy should be engaged only by natural monopolies.
Marshall Theory - Economic Theory market, considers the laws of market functioning.
Specificity microeconomics
Microeconomics considers the behavior of economic agents at their own level.
Economic agents- These are the actors of the economic theory. For microeconomics, it is a household and firm.
The household- In it, economic ties. It is usually determined through functions:
resource owners;
buyers of goods and services with a fairly stable structure of demand.
Firmfrom the point of view of microeconomics is an intermediary between resources owners and buyers of goods and services. purpose- Maximization of profits, less often a total revenue.
From the position of the institutional economy (R. Coase), the company is a bundle, or a network, contracts.
Question 1. Production factors and their characteristics Production - expedient activity on the transformation of some benefits (factors of production, resources) to others necessary to meet the needs of production - expedient transformation activities of some benefits (production factors, resources) to other necessary to meet the needs Production factor is a resource considered by its owner as a steady source of income, and therefore is capitalized, that is, a factor of production used for the production of goods and services is a resource considered by the owner as a steady source of income, and therefore is capitalized, that is, used for the production of goods and services production factors in a classic and neoclassical school factors of production in a classic and neoclassical school
Capital production factors - part of the reserves participating in the production of new products and capable of bringing the income to their owner in the form of% (R) Capital - part of the stocks involved in the production of new products and capable of bringing their owner in the form of% (R) work - productive abilities Individuals involved in the production process of goods and services and bringing their owner income in the form of wages (W) labor - the productive abilities of the individual participating in the process of producing goods and services and their owner income in the form of wages (W) land - productive resources that nature provides for man; bring the income to the owner in the form of rent (R) land - productive resources that nature provides for the use of man; bring the income to the owner in the form of rent (R) entrepreneurship - the ability of the individual to find optimal combinations of production factors; Imagine income in the form of profit (π) entrepreneurship - the ability of the individual to find optimal combinations of production factors; Bring income in the form of profit (π)
Question 2. Production process and its main characteristics. Analysis Tools Production Function - Description of the production process and its technology Production function - a description of the production process and its technology technology - a way to convert factors of production into a product technology - a way to convert factors of production into a product technology imposes restrictions on the proportions and possibilities of substitution of factors technology imposes restrictions on proportions and the possibility of substitution of factors
The technology imposes restrictions on the proportions and possibilities of substitution of factors technological capabilities and boundaries (limits) of the factors of factors technological capabilities and boundaries (limits) of factors replacement - are determined by the peculiarities of a particular technological process. Economic boundaries of substitution - are determined by such parameters as the productivity of the factor and its price.
Method of production is technologically effective if: the volume of the manufactured product is the maximum possible using this fixed number of factors (resources) the volume of the product produced is the maximum possible when using this fixed number of factors (resources) for the production of a given product volume is used by the minimum amount of resources (or although One, provided that the costs of other factors did not increase) for the production of a given product amount of the minimum amount of resources (or at least one, provided that the costs of other factors did not increase)
Factor productivity rating Short-term and long-term periods Short-term and long-term periods Permanent and variable factors Permanent and variable factors Using a variable factor: the concept of "common factor product" (TWF), "Middle Factor Product" (ARF), "factor limit product" (MRF) Using a variable factor: the concept of "common factor product" (TPF), "average factor product" (ARF), "factor limit product" (MRF) General approach to optimal factor hiring: MRF \u003d PF General approach to optimal hiring factor: MRF \u003d PF.
The law of the decreasing limit performance of the variable production factor reflects the relationship between the release of additional products, which we obtain when we consistently add an additional unit of the variable factor to the constant number of other factors reflects the relationship between the release of additional products that we get when we consistently add an additional unit of alternating factor to constant The number of other factors is the essence of this relationship: Starting from a certain moment, the sequential addition of the 1-centuries of the variable factor to the constant (fixed) factor gives a decreasing additional (limit) product for each additional unit of the variable factor essence of this relationship: starting from a certain point, sequential addition 1 - A variable factor to the unchanged (fixed) factor gives a decreasing additional (limiting) product for each additional unit of variable factor each additional The lifting unit of the variable factor introduces a smaller contribution to the product growth compared to the previous unit, so that when MRF \u003d 0 - the volume of production reaches its maximum, each additional unit of the variable factor makes a smaller contribution to the product growth compared to the previous unit, so when MRF \u003d 0 - the volume of production reaches its maximum if MRF 
Interaction "Factor - Factor" Isokvanta - All combinations of factors that allow you to achieve this volume of production of isoquate product - all combinations of factors that allow you to achieve this volume of product output Map isokvant Map Izokvant Types of Izokvant Types of Isokvant Interchangeability of production factors, MRTS Interchangeability of production factors, MRTS
Question 3. Analysis of the behavior of the manufacturer. Equilibrium Equilibrium Equality (Prerequisites) Analysis Analysis Analysis Budget Restriction Manufacturer (Firms) Budget Limit Manufacturer (Firms) TC \u003d PL + PCC TC \u003d PL + PCC Izox - Combinations of factors that firm can buy with existing Prices and with its budget limitation of amusement - a combination of factors that the company can buy at existing prices and with its budget limitation
The optimal combination of factors produced by the basic principle: the manufacturer (firm) will reach the minimum of the production costs of this volume of release, if it distributes its costs for the purchase of various production factors in such a way that the limit products, brought by each last unit of factor expenditures, will be the same, regardless of What factor they were spent the basic principle: the manufacturer (firm) will reach the minimum of the production costs of this volume of issue, if it distributes its costs for the purchase of various production factors in such a way that the limit products, brought by each last unit of factor expenses, will be the same, regardless of whether What factor they were spent
The manufacturer's equilibrium conditioner chooses the method (technology) of the production of this amount of output with the lowest costs at existing prices for production factors and budgetary restriction, the manufacturer chooses the method (technology) of the production volume of this amount with the lowest costs at existing prices for production factors and budgetary restriction is optimal. (Technology) corresponding to a touch point of isokosti (budget line) of some isoquance (product indifference curve): The ratio of the limit products used equal to the ratio of their prices is optimal is the method (technology) corresponding to the touch point of isokosti (budget line) by some isoquance (product indifference curve ): The ratio of limit products used equal to the ratio of their prices, this point characterizes the equilibrium of the manufacturer, since the manufacturer in these prices for production factors is not only ready, but can also replace one factor to other Without a change in the level of product release, this point characterizes the equilibrium of the manufacturer, since the manufacturer in these prices on production factors is not only ready, but also can replace one factor to another without changing the level of product release
The costs of costs caused by the economic choice of costs caused by the economic selection - obvious (accounting) - implicit (alternative) - non-return costs due to the time interval - permanent (TFC) - Variables (TVC) - General
Costs of the company in the short-term period of general (total) costs of this production volume in the short term: general (total) costs of this production volume in the short term: TC \u003d TFC + TVC TC \u003d TFC + TVC Medium costs: Average costs: - Middle constant costs ( AFC \u003d TFC / Q) - average cost variables (AVC \u003d TVC / Q); - medium total (cumulative) costs (ATC \u003d TC / Q); Limit costs (MS \u003d VC / Q) Limit costs (MS \u003d VC / Q)
Dynamics of general (cumulative), medium and limiting costs depending on the volume of release, depending on the volume of release, depending on the performance of the variable factor (medium and limit), depending on the performance of the variable factor (medium and limit) conclusions
Costs of the company in the long term The behavior of costs and scale of production (firm size) The behavior of costs and the scale of production (firm size) scale of production. Effect (recoil from) scale scale. Effect (recoil from) scale Miniminally effective size of the company and the structure of the industry The minimum effective amount of the company and the industry structure various forms of the long-term average curve and the structure of the industry (the number and size of firms in the industry) various forms of the curve of long-term average costs and the structure of the industry (quantity and size firms in the industry)
Lecture number 6. Production theory
1. The concept of production function, production scale
Any firm that conducts production and economic activities, an important task is to carry out full control over the production process, as well as the number of resources that are necessary to create a certain type of product. It is considered that the firm is most effective only when it can achieve the greatest volume of production with minimal costs and costs of production factors.
In this way, production functionit gives the mathematical expression of the relationship of production factors and the number of resources spent in the production process with the scale of production and the nomenclature of goods and services produced. This indicator allows you to determine the largest volume of production of a particular product in the presence of a certain, strictly limited number of resources. Similarly, it can be said that the production function serves as a determining point for the production process, since it shows the minimum of the amount of resources necessary for its implementation:
where q is the cumulative release of goods of a certain range in accordance with the Production Nomenclature;
f - the corresponding costs of resources that the company must be incurred to produce the necessary benefit to society.
To organize a production process, an indispensable condition is the interaction of all factors of production and resources, which ensures its integrity and continuity. Among such factors, land, capital (material, embodied in buildings, structures and foundations of the organization, and financial in the form of investment), entrepreneurial resource and, most importantly, work. It is the labor activity of the organization's employees that is considered to be the determining condition for the performance and intensity of production operations.
The most important production factors are labor (a totality of workers, work efforts) and capital (monetary, fixed assets, etc.). Thus, the production function can be represented as a function of the dependence of the production results from the respective resource costs:
In order for this function to have a complete practical value, it is necessary to determine the role of the scales effect and determine the possible options for its return. The company always functions on a certain scale, and if desired, it can either increase it, or reduce depending on which course was taken to the development of production. Thus, the return on the scale of production is characterized by the ratio of the scale of production or resource frames, within which the manufacture of finished products is carried out with direct end data, which can be achieved as a result of such a policy. This indicator may have three different forms depending on which the proportions are the costs and results of production.
1. Scales It is characteristic of such a production when the company with an increase in the number of production factors used at the same time reaches higher performance. In other words, a certain proportion is observed, which allows you to expand the offer on the market without increasing costs. If we assume that Q is the initial production volume, then:
where n is a proportional increase ratio.
2. Increasing return It can be noted when the results are growing incommensurate with costs. In other words, increasing the costs of factors of production and material resources several times, the company produces a greater amount of goods and services (more than several times) compared to the initial, i.e. q1\u003e nq. The practical basis of such a case may be the technological development of the organization when the equipment saves resources and labor costs. The largest firms can create special advertising departments, working with personnel, strategic planning departments, etc.
3. Descendingit occurs when the growth of production volumes, its end result increases lower rates than the resources involved: i.e. Ql< nQ. Получается, фирма несет дополнительные издержки, что может быть связано как с неразвитостью технологий и несовершенным оборудованием, так и с нерациональным и неэффективным использованием факторов производства и иных ресурсов.
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The theory of the behavior of the manufacturer (theory of production). Selection of effective production technology
General provisions
Theory of production (manufacturer behavior)considers the economic principles underlying the proposal curve, i.e. He studies how the manufacturer accepts and implements the decision on production.
Thus, the theory of production allows you to explain: the behavior of an enterprise (firm) on the market, the formation of an individual proposal, its structure, dynamics, relationship with prices. Representatives and classical, neoclassical schools of economic thought made a significant contribution to the creation of this theory.
INsimplified form to characterize productionas a process of transformation (transformation) of economic resources into economic benefits.
Production factors (production resources, economic resources)- the benefits of natural and artificial origin used for the production of (creation) of the necessary destiners and services.
Production factors are no less numerous and diverse than final consumer goods, but as it was said earlier, it is customary to allocate four aggregated classes:
- work;
- capital;
- land;
- Business ability.
Work- This is the expedient human activity, with the help of which it transforms nature and adapts it to meet his needs. Every work aims to produce any result.
Labor is represented by intellectual and physical activity aimed at making goods and provision of services. The combination of personality abilities, due to education, vocational training, skills, health, forms human capital. The more qualified person's work, the higher its capital, and, accordingly, income on this capital (wage). Investment investments in human capital are currently the most efficient and quickly pay off.
The time for which a person works is called a working day or working time. Their frequency - the value is changeable, but can not be more than a day, as a person needs to restore its physical forces (it takes time for sleep, recreation, eating, etc.), and it is also necessary to meet other needs.
Capitalas a factor of production in physical terms acts as a set of products used in the production of goods and services. These are tools, machinery, equipment, warehouse, transport communications, communications, etc. Their technical condition is constantly improving and has a decisive effect on the overall performance of the production process and its effective feasibility.
Landconsidered as a natural factor. It is not the result of human activity. This group of elements (factors) of production includes natural wealth, deposits of fossils that are applicable in the production process. This category includes arable land, forests, etc.
Business ability- This is a special kind of human capital represented by the coordination and combination activities of all other production factors in order to create goods and services. The specifics of this type of human resource is to be able and desired in the production process on a commercial basis to introduce new types of product manufactured, technologies, forms of business organization at a certain degree of risk and the ability to incur damages.
In the theory of behavior of the manufacturer, two stages of studies are allocated.
At the first stage of studies of the behavior of the manufacturer, the most efficient production technology for any volume of products is determined. In addition, the dependence is studied between the number of resources used, their combination and the volume of products, while the firm's desire to produce every possible amount of products with minimal costs (see below).
At the second stage of the studies of the manufacturer's behavior, the production volume and the number of resources used to maximize the manufacturer's profits are determined (see ch. 11).
The theory of the manufacturer's behavior is the basis for understanding the chapters 11-13, etc.
Firststage of research is characterized by the choice of the most efficient technology for each production volume. Consequently, the rational behavior of the manufacturer at this stage will behave aimed at:
Maximization of production volume (Q) for given production costs (TC. - total Cost) those. When disposable
funds are limited;
Minimizing production costs (TC) For a given amount of production (Q).
In both cases, there is a minimization of medium costs (AC. - average Cost):
Task manufacturerit is to determine the optimal choice of production (the manufacturer's optimum, equilibrium of the manufacturer).
Optimal choice of production- This is a choice characterizing the rational behavior of the manufacturer.
It should be noted that secondstage of research, speaking of rational behavior, we will keep in mind the maximization of profits.
INthe basis of the theory of production is the concept production function,which shows the relationship between the volume of products and the number of resources used, as well as their combination.
In modern society, any company produces, as a rule, not one, but a number of economic goods, however, in order to simplify research, we will assume that only one product (or service) is produced. The production function in this case has the form: 
where Q. - volume of release; - Number of uses
production factors.
The production function describes many technically efficient production methods (production technologies).
Each method of production is characterized by a certain combination of resources necessary to obtain a unit of products at a given level of technology. The method of production is considered technically effective if there are no other methods of production using at least one resource in fewer.
And, accordingly, on the contrary: the method of production is considered technically ineffective, if there is a different method of production that uses at least one resource in smaller quantities.
If different technically effective methods of production assume the use of some resources in more, and others in less, each of these methods is considered technically efficient.
Technical efficiency should be distinguished from economic efficiency.
Economic efficiencygivens the ratio of prices of resources used. The choice between two technically efficient production methods will be based on economic efficiency.
Changing the ratio of resource prices can make an economically effective way of producing economically inefficient, and vice versa.
It was the solution to the task of determining the economic efficiency of production methods and further research will be devoted.
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