Production Costs and Profit Analysis: Examining Market Efficiency | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

PART V Cost Production Profit ( page 274 textbook) ( page 210 notebook) Goal of the chapter:
- How does the number of firms affect the prices in a
market and the efficiency of the market outcome?
- define some of the variables that economists use to
measure a firm’s costs, and we consider the relationships among these variables.
13-1 What Are Costs? ( page 277 textbook)
13-1a Total Revenue, Total Cost, and Profit Firm’s objective:
To maximise profit ( tối đa hóa lợi nhuận) Profit:
Total revenue: The amount that the firm receives for the of its sale output. TR = P × Q ( output)
Total Cost: The amount that the firm pays to the market buy inputs.
value of the inputs a firm uses in production.
13-1b Costs as Opportunity Costs: ( page 278 textbook) Note:
The cost of something is what you give up to get it
When economists speak of a firm’s cost of production, they include all the
of making its output of goods and service opportunity costs s.
Explicit cost: ( chi phí hiện)
- Chi phí hiện (tiếng Anh: Explicit cost) là chi phí kinh doanh thông
thường, xuất hiện trong sổ cái và ảnh hưởng trực tiếp đến khả năng sinh lời của công ty ( vn biz) .
- An explicit cost is a direct payment made to others in the course of running a business, such as , wage and rent materials Carbaugh, Robert J. (January 2006) - Explicit costs are that appear in the gene normal business costs ral
ledger and directly affect a company's profitability. ( investopedia)
- An explicit costs are measurable and will be included in profit/loss accounts
- Explicit costs are out-of-pocket for a firm costs —for example,
payments for wages and salaries, rent, or materials. Ex:
- Caroline hires workers to make the cookies, the wages she pays are part of the firm’s costs.
- Purchase of new assets, e.g. machines, factories, ( ) firm costs - Purchase of raw materials - lease payments ( thuê)
Implicit cost: ( chi phí ẩn)
- Chi phí ẩn (tiếng Anh: Implicit Cost) là bất kì chi phí nào đã phát sinh
nhưng không nhất thiết phải được đệ trình hoặc báo cáo dưới dạng một
khoản chi phí riêng biệt. ( vnbiz)
- Implicit costs are related to the opportunity cost of one course of action that leads to .Implicit costs are not usua lower income lly recorded. ( economicshelp)
- Implicit costs are a specific type of opportunity cost: the cost of
resources already owned by the firm that could have been put to some other use. ( Khan academy)
- An implicit cost is any cost that has but not already occurred
necessarily shown or reported as a separate expense. It represents an
opportunity cost that arises when a company uses internal resources
toward a project without any explicit compensation for the utilization of resources. Ex:
- Imagine that Carolineis skilled with computers and could earn $100
per hour working as a programmer. For every hour that Caroline works
at her cookie factory, she gives up $100 in , and this income forgone
income is also part of her costs. - A firm may give a worker to take time of ‘compassionate leave’ f work.
This leads to a loss of output which is not directly measured. ( internal resources for ) other use
- hiring a new worker may also imply some implicit costs. For example,
to welcome the new worker and train him to a necessary standard may take the of the manager time , who as he trains the cannot do other tasks new workers. ( for internal resources ) other use