Chapter Outline

Headline: GM and UAW Butt Heads Over Jobs

1. Introduction
2. The Production Function
   1. Short-Run Versus Long-Run Decisions
   2. Measures of Productivity
      1. Total Product
      2. Average Product
      3. Marginal Product
   3. The Role of the Manager in the Production Process
      1. Produce on the Production Function
      2. Use the Right Level of Inputs
   4. Algebraic Forms of Production Functions
   5. Algebraic Measures of Productivity
   6. Isoquants
   7. Isocosts
   8. Cost-Minimization
   9. Optimal Input Substitution
3. The Cost Function
   1. Short-Run Costs
   2. Average and Marginal Costs
   3. Relations Among Costs
   4. Fixed and Sunk Costs
   5. Algebraic Forms of Cost Functions
   6. Long-Run Costs
   7. Economies of Scale
   8. A Reminder: Economic Costs Versus Accounting Costs
4. Multiple-Output Cost Functions
   1. Economies of Scope
   2. Cost Complementarity
5. Answering the Headline
6. Summary
7. Key Terms and Concepts
8. Conceptual and Computational Questions
9. Problems and Applications
10. Selected Readings
11. Appendix: The Calculus of Production and Costs