Managerial Eco Vize SonrasÄ±

# Managerial Eco Vize SonrasÄ± - In t he Suppose t hat w e...

This preview shows pages 1–2. Sign up to view the full content.

Suppose that we apply 2 mid-term exam for this course.From the first one you got 80 and from Average of them is 90 . It is subject to increase If you got 70 in second exam.Average will be 75 so your average will subject to decrease to 75 If new comer (the marginal product) is higher than the average, you average is subject to incre But if you get under that (70) your average subject to decrease (75) Labor should be increased because 1 unit of dollar paid to labor gives us more product on marginal basis. 1 means that for each dollar spent on labor here result 1 production. Each dollar spent on capital we ‘ve 0.5 product so we should rely more on labor and we should decrease the level MPL = dQdL MPX = dQdX In the short-run we’ve just one variable input which is labor, input usage in the short-run this is our T Lect ure V 28 Nisan Sly 2: Technical efficiency + Economic efficiency = Total efficiency We expect to have the Maximum level of Total efficiency Sly 3: For production we utilize inputs and in the production, we classify inputs under variable/fixed Variable inputs that are subject to change with the level of production. The most well-known variable input that we are gonna use is Labor.We can increase the level of employee Fixed inputs : which can not be changed easily with the level of production : Capital ; Money, machinery,building, factory. Sly 4: In theory, we say that every input can be variable if there is not a time limit (1 month - 1year , 2month - 2year). You can build a new factory in 2 years so if you take the parallel time for 2 years then it is variable.But basically when we are talking about period of investment we may use short run and long run.In terms of defining period as short run long run , capital is Short run : - At least one input is fixed ; we are going to pay, capital - All changes in production can be achieved by changing variable inputs ; which will be just Labor Long run : - All inputs are variable :we can build up a factory,we can buy a new machinery, we can start tooperate a new industry - Output can be changed by changing variable inputs : we can employ new workers and by the same time in the long run we can change our production capacity by changing our machinery so everything is variable. Sly 6: We’ll deal with Short run in this lecture in which capital is fixed : K : fixed capital Short run production function : Q = f (L, K ) = f(L) Production of function of Labor utilized on services or goods and capital utilized in this production.However in the short run capital is fixed. Short run production function is a Sly 5:Possible production levels If we have 0 employee, there will be no production If you invest 2 units of capital then you can produce 52 or 112 or 170. ...

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 27

Managerial Eco Vize SonrasÄ± - In t he Suppose t hat w e...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online