I.
| Introduction |
II.
| The Production Function |
| A. | Short-Run Versus Long-Run Decisions | B. | Measures of Productivity | | 1. | Total Product | | 2. | Average Product | | 3. | Marginal Product | C. | The Role of the Manager in the Production Process | | 1. | Produce on the Production Function | | 2. | Use the Right Level of Inputs | D. | Algebraic Forms of Production Functions | E. | Algebraic Measures of Productivity | F. | Isoquants | G. | Isocosts | H. | Cost Minimization | I. | Optimal Input Substitution |
|
III. | The Cost Function |
| A. | Short-Run Costs | B. | Average and Marginal Costs | C. | Relations Among Costs | D. | Fixed and Sunk Costs | E. | Algebraic Forms of Cost Functions | F. | Long-Run Costs | G. | Economies of Scale | H. | A Reminder: Economic Costs Versus
Accounting Costs |
|
IV. | Multiple-Output Cost Functions |
| A. | Economies of Scope | B. | Cost Complementarity |
|
V.
| Answering the Headline |
VI.
| Summary |
VII.
| Key Terms and Concepts |
VIII.
| Conceptual and Computational Questions |
IX.
| Problems and Applications |
X.
| Case-Based Exercises |
XI.
| Selected Readings |
XII.
| Appendix: The Calculus of Production
and Costs |
