Chapter nineteen Profit-Maximization 利润最大化
Chapter Nineteen Profit-Maximization 利润最大化
Structure Economic profit Short-run profit maximization Comparative statics Long-run profit maximization Profit maximization and returns to scale Revealed profit maximization
Structure Economic profit Short-run profit maximization –Comparative statics Long-run profit maximization Profit maximization and returns to scale Revealed profit maximization
Economic profit A firm uses inputs j=1., m to make products i=1,n Output levels are y1.n nput levels are x1…,X Product prices are pis. ,pn. nput prices are w1…,Wm
Economic Profit A firm uses inputs j = 1…,m to make products i = 1,…n. Output levels are y1 ,…,yn . Input levels are x1 ,…,xm. Product prices are p1 ,…,pn . Input prices are w1 ,…,wm
The Competitive Firm The competitive firm takes all output prices p1,--,pn and all input prices as given constants
The Competitive Firm The competitive firm takes all output prices p1 ,…,pn and all input prices w1 ,…,wm as given constants
Economic profit The economic profit generated by the production plan(x1;…,xmy1…yn)is I=p1y1+…+Pnyn-W1X1-…WmXm
Economic Profit The economic profit generated by the production plan (x1 ,…,xm,y1 ,…,yn ) is = p1 y1 ++pn yn=− w1 x1 −wmxm