《經(jīng)濟學基本原理》06 Production and Business Organization

經(jīng)濟學原理：第六講9/26/2011Ch.6:ProductionandBusinessOrganizationTheoryofProductionandMarginalProductBusinessOrganization6A.TheoryofProductionWhatisbehindthesupplycurve?behaviorofproducers----theoryofproductionProduction:theprocessoftransforminginputs(labor,capitalandland)intooutputs(food,clothing,books,….)Inputs----technology---outputsRecallPPF(productionpossibilityfrontier):differentoutputcombinationsthatcanbeproducedgiventechnologyandinputs.6A.ProductionFunctionFocusononeparticularoutput:howmuchcanbeproducedgivenacertainquantityofinputs?Productionfunction:themaximumoutputthatcanbeproducedgivenacertainquantityofinputs.Aparticularproductionfunctiondescribesaparticulartechnologyoftransforminginputsintooutputs.Forexample,,whereistheoutput(e.g.,rice)andislabor,andiscapital.Thefunctionistheproductionfunctionlinkinginputstooutputs.Total,Average,andMarginalProductsOftenwewanttoknowhowoutputchangesasoneinputchanges.Inansweringthisquestion,weneedtoholdotherinputsconstant.Totaloutput:,thetotalamountofoutputcanbeproducedforaquantityoflabor(holdingcapitalfixed).Marginaloutput:,theadditionalamountofoutputresultingfromoneadditionalunitoflabor.Averageoutput:,totaloutputdividedbytotalinputTheLawofDiminishingReturnsThelawofdiminishingreturnsstatesthatasoneinputincreases(holdingotherinputsconstant),itsmarginaloutputdecreases.Thekeyhereisthatotherinputsareheldconstant.Thelawholdsasageneralprinciple,notnecessarilyoneverypoint.AdebateinChineseeconomichistory:wasmarginaloutputoflaborinagriculturepositiveorclosetozeroorevennegative?ReturnstoScaleWhatifallinputsareincreasedbythesameproportion(e.g.,double)?Constantreturnstoscale:asameproportionalchangeinallinputsleadstothesameproportionalchangeinoutputIncreasingreturnstoscale(economiesofscale):asameproportionalchangeofinputsleadstoamore-than-proportionalchangeinoutputs.Decreasingreturnstoscale(diseconomiesofscale):asameproportionalchangeofinputsleadstoaless-than-proportionalchangeinoutputs.ReturnstoScaleReturnstoscalecanvaryastheinputlevelchangesortechnologychanges.Inthecaseofincreasingreturnstoscale,firmswillwanttoexpandtheiroperationscalestosavecostsandproducemoreefficiently,ortwosimilarfirmsshouldmergeintoone.Inindustrieswithstrongeconomiesofscale,wetendtoseelargefirms.ShortRunandLongRunChangeproductionleveltakestime.Variablefactors(e.g.,labor,materials)arethoseinputsthatcanbechangedintheshortrun.Fixedfactors(e.g.,largemachinery,plants)arethoseinputsthatcanonlybechangedinthelongrun.TechnologicalChangeLargeTechnologicalChanges:Threeindustrialrevolutions.Debate:continuousorjumps?Debate:causeoreffectofeconomicgrowthProcessorproductinnovationTechnologicAdvances:moreoutputscanbeproducedfromthesameamountofinputs.Thatis,technologicaladvancesincreaseproductivity.NetworkEffectCommunicationnetworks(e.g.,phone,email):thevaluetoaconsumerdependsonhowmanyothersareonthenetwork,i.e.,adoptionexternality.Thisimpliesincreasingreturnstoscale,thuslarge“systems”tendtoemerge:Microsoftoperatingsystem,Apple,..Onceasystemisformed,itishardtochange,soitcanexhibitinertiaforquiteawhile.ProductivityProductivity:ratioofoutputtoinputsLaborproductivity:amountofoutputperunitoflaborTotalfactorproductivity:outputperunitofaninputindex.Productivitygrowth:technologicaladvanceeconomicsofscale:economicsofscope:institutionalimprovement二、影響長期經(jīng)濟增長的因素和原因17美國經(jīng)濟增長因素分解二、影響長期經(jīng)濟增長的因素和原因中國經(jīng)濟增長因素分解B.BusinessOrganizationsBusinessfirms:organizationofproductionprocess.Firms:threefunctions(ascomparedwithhouseholdself-reliance)SpecializationCoordinationRaisingcapitalandresourcesFirmsversusMarket(Coase1937):whatdeterminestheboundaryofthefirm?transactioncosttheoryPropertyrighttheoryofthefirm……LegaltypesoffirmsIndividualProprietorship:usuallyverysmallinsizePartnerships:unlimitedliabilityorlimitedliabilityCorporation:Alegalpersonwithlimitedliability.OwnershipofstocksSeparationofownershipandmanagementOwnership,Control,andExecutiveCompensationPubliccorporations:ListedonstockexchangesDiverseownershipNolargeshareholdersSeparationofownershipandControlManagementhaseffectivecontrolManagementandboardofdirectorsWhohiresandmonitorandfiresCEO?RecentlyHPOwnership,Control,andExecutiveCompensationHowisexecutivecompensationdetermined?SomeargueitisdeterminedtoprovideproperincentivessothatCEOsmaximizecompanyvalue.OthersargueitisdeterminedbyCEOsthemselves.FamilyFirmsandProfessionalFirms:Familyfirms:controlledbyfoundingfamilyControlisinheritable:thepooloftalentsCrowdingouttalents:familyversusprofessionalmanagerCorporationinChinesehistory:晉商與徽商PrivateandState-ownedEnterprisesState-ownedenterprises:central-planning’foundationProblemswithSOEs:Whoarethe“people”owners