NEOKLASIČNA FUNKCIJA PROIZVODNJE IZ TRŽIŠNE PERSPEKTIVE
Journal: The Scientific Journal for Theory and Practice of Socio-economic Development Socioeconomica (SJSECO) (Vol.2, No. 3)Publication Date: 2013-06-30
Authors : Mehmed Meta;
Page : 226-228
Keywords : Neoclassical production punction; Marginal physical Product; Average physical product; Value of marginal physical product; Average value of a physical product; Fixed inputs; variable inputs;
Abstract
Short period of time in microeconomic theory defines the operational point of view. Under it does not include the time period specified duration quantitatively accurate, but as the time interval within which the company is manufacturing variations may be adjusted by changing only the variable production inputs, and not those inputs that can not be changed (fixed inputs). In order to conduct the company in a short period of time could explain the need to understand the limitations of the character with which it is in the process of its operation meets. There are two important limits which are faced by the company and that determine its behavior: technological and market limitations. Technological limitations contained in the production function. Enterprise is only available certain (more or less) the number of combinations of inputs and the resulting outputs, and this reality presents insurmountable limit for each company, and she must be considered. Only technological limitation leads to economic restrictions contained in the cost function. Competition is another form of restriction which limits the company must be considered. The company can offer the market what can physically produce and establish a price he pleases, but he can sell only what customers want to buy and at a price they are willing to pay. In this paper we analyze the behavior of a competitive firm with a neoclassical production function, and we present the problem of maximizing the profits of companies in competitive markets, and market factors of production output. In this paper, we start from a very simple algebraic functions of production, fixed prices of production inputs and outputs and fixed rates will analyze the economic consequences of management decisions on the amount of companies engaged in the variable input level of total profits and producer surplus. The aim of this paper is to point out, not only to ease the algebraic and geometric ways of quantifying the optimal use of variable quantities of production inputs, but also on the effects of suboptimal use of a given quantity of inputs to the economic position of the company and the amount of its surplus.
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