Kinh tế học - Long - Run costs

Long-run CostsProduction in the long runmeaning of the 'long run'returns to scaleconstant returns to scaleincreasing returns to scaledecreasing returns to scaleShort-run and long-run increases in outputShort-run and long-run increases in outputShort-run and long-run increases in outputShort-run and long-run increases in outputLong-run CostsProduction in the long run (cont.)economies of scalespecialisation and the division of labourindivisibilitiescontainer principlegreater efficiency of large machinesby-productsmulti-stage productionspreading overheadsfinancial economieseconomies of scopediseconomies of scaleexternal economies of scaleexternal diseconomies of scaleLong-run CostsLong-run average costsassumptions behind the curvefactor prices are givestate of technology and factor quality are givenfirms choose least-cost combination of factorsshape of the LRAC curveAlternative long-run average cost curvesOutputOCostsLRACEconomies of ScaleOutputOCostsLRACDiseconomies of ScaleAlternative long-run average cost curvesOutputOCostsLRACConstant costsAlternative long-run average cost curvesLong-run CostsLong-run average costsassumptions behind the curvefactor prices are givestate of technology and factor quality are givenfirms choose least-cost combination of factorsshape of the LRAC curvea typical LRAC curveA typical long-run average cost curveOutputOCostsLRACOutputOCostsLRACEconomiesof scaleConstantcostsDiseconomiesof scaleA typical long-run average cost curveLong-run CostsLong-run average costsassumptions behind the curvefactor prices are givestate of technology and factor quality are givenfirms choose least-cost combination of factorsshape of the LRAC curvea typical LRAC curvelong-run average and marginal cost curvesLong-run average and marginal costsOutputOCostsLRACLRMCEconomies of ScaleOutputOCostsLRACLRMCDiseconomies of ScaleLong-run average and marginal costsOutputOCostsLRAC= LRMCConstant costsLong-run average and marginal costsOutputOCostsLRMCLRACInitial economies of scale,then diseconomies of scaleLong-run average and marginal costsLong-run CostsLong-run average costsassumptions behind the curvefactor prices are givestate of technology and factor quality are givenfirms choose least-cost combination of factorsshape of the LRAC curvea typical LRAC curvelong-run average and marginal cost curvesRelationship between long-run and short-run average costsLong-run CostsLong-run average costsassumptions behind the curvefactor prices are givestate of technology and factor quality are givenfirms choose least-cost combination of factorsshape of the LRAC curvea typical LRAC curvelong-run average and marginal cost curvesRelationship between long-run and short-run average coststhe envelope curveDeriving long-run average cost curves: factories of fixed sizeSRAC3CostsOutputOSRAC4SRAC55 factories4 factories3 factories2 factories1 factorySRAC1SRAC2SRAC1SRAC3SRAC2SRAC4SRAC5LRACCostsOutputODeriving long-run average cost curves: factories of fixed sizeDeriving a long-run average cost curve: choice of factory sizeCostsOutputOExamples of short-runaverage cost curvesLRACCostsOutputODeriving a long-run average cost curve: choice of factory sizeLong-run CostsLong-run average cost curves in practicethe evidenceminimum efficient plant sizeDecision making in different time periodsvery short runshort runlong runvery long run akpe na mi!