in economic terminology, the inputs used to produce output are referred to as This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Economics: Output, Inputs, and the Short Run. Following along are instructions in the video below:
“You have a business and you re producing something maybe. Hamburgers maybe television sets and and you d like to know how much should i produce so as to make most profit. I can from my operation. We re now entering a set of lectures that s going to equip you with the tools.
Economists use for describing the behavior of profit. Maximizing firms in order to get to the question of what a profit maximizing firm. Should do we have to back up and start with some basics the first thing..
We ll do is describe the technology of the firm. That is what can the firm do with a given set of inputs to produce a certain amount of output. We re going to describe the technical or technological possibilities that a firm has for producing output from input. That is for assembling television sets or making hamburgers once we have a description of the firm s technology.
We will then look at the cost to the firm of producing output. What we do is we take the technology and combine that with knowledge of the prices that the firm has to pay for its inputs like labor. Raw materials capital and come up with the cost per unit of making hamburgers or televisions..
Finally we ll combine the information. We have about the costs of production with information about the price at which the firm can sell its product once we ve combined those pieces of information. We ll be able to predict the best course of action for a profit maximizing firm will be able to answer the question. How much output should a firm produce if it wants to maximize its profits subject to its technology.
The price it pays for its inputs and the environment. The competitive environment in which it finds itself so let s back off then of this big picture and focus on the first set of specific questions. We d like to ask that is what are the technological possibilities of a firm that is what can the firm..
Do we re looking now at a firm s technology and a technology simply means a catalogue of things that a firm knows how to do what we re most interested in is how much output. A firm can produce with a given amount of input now this sounds a lot like engineering doesn t it it s because it is economics. When we describe production begins with a purely engineering relationship that is a relationship that has nothing to do with economics and money and stuff like that but has more to do with technological possibilities what can the firm do according to the laws of physics. According to its know how to turn labor and raw materials into its finished product now.
We re going to start with a careful description of a firm s technological possibilities and then we re going to look at how to represent those technological possibilities. In a graph finally. We ll introduce some concepts that economists focus on when they describe the technology that a firm uses to produce its output..
Let s start then with a chart that shows the technological possibilities that the firm faces. It s kind of like a production possibilities chart for the firm and we call this production possibilities. A total output relationship total output is defined as the total amount of output that a firm can produce using a given amount of input subject to its technological. Know how and any other factors that constrain its production.
What a firm can do given its know how with a certain amount of input total output therefore. ” ..
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