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5. production study with production in the short term in the long term will benefit our business decisions? Production in the short term, then the manufacturer will often use both inputs and inputs are variable inputs in parallel to the short term is divided into three stages: Short term study it. Make business decisions that should be in the range of products will allow manufacturers receive the maximum profit from the use of inputs from the image producers should decide to manufacture products in the range 0 ≤ 2 productions, which all this even though the EP 1 < MP and AP will be in the lower range, but there are also greater than 12 MP and labour efficiency, but also because of the performance are shown that the decrease in TP have backpacks on the wok or output includes also increases when using variable inputs increase, and manufacturers can produce the item until the MP is equal to zero, that show how to get the most celebrities.However, if the manufacturers still use variable inputs increase MP will have a further negative effect and make the total production. Which the manufacturer itself. For deciding whether manufacturers should produce an item at any point, so it will make producers receive maximum profit from the use of inputs, it will need to be made based on the variables that are associated with the following.1. incremental revenue from the use of the production factors (Marginal Revenue Product MRP,) is the revenue from the increased use of variable inputs increase of one unit in the production of goods and services.2. incremental costs from the use of inputs (Marginal Factor Cost, MFC) as cost increases due to the increased use of variable inputs, one unit in the production of goods and services.3. terms of use of variable inputs, will get the most use one type of variable factors at the point, MRP = MFCPart of the production in the long term The manufacturer can change the inputs of all kinds, is the variable factor. Therefore, The cost of production factors, arising from the use of inputs to production factors are variable, and the variable cost of all.In the event that the manufacturer uses two types of variable factors of production, capital and labour, the manufacturer may choose to use, must decide whether to invest, and how much labor to be more production volume increases. By combining the proportion using both types of inputs are required to induce productivity the most. The manufacturer should be used at the point where the variable factor proportions make the incremental cost of production (MPK) productivity of Labor (MPL) is equal to the proportion of the cost per pay rate (r) (w) (or r/w = MPL/MPK)
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