Production, costs, & pricing
- See also: record producer.
In microeconomics, production is the act of making things, in particular the act of making productss that will be traded or sold commercially. Production decisions concentrate on what goods to produce, how to produce them, the costs of producing them, and optimizing the mix of resource inputs used in their production. This production information can then be combined with market information (like demand and marginal revenue) to determine the quantity of products to produce and the optimum price to charge. (In macroeconomics, production is measured by gross domestic product and other measures of national income and output.)
Aspects of production and pricing theoryProduction theory basics* production efficiency* factors of production* total, average, and marginal product curves* marginal productivity* isoquants* the marginal rate of technical substitutionEconomic rent* classical factor rents* Paretian factor rentsProduction possibility frontier* what products are possible given your resources* the trade-off between producing one product rather than another* the marginal rate of transformationProduction function*inputs *diminishing returns to inputs*the stages of production*shifts in a production functionCost theory*the different types of costs**opportunity cost** or historical costs**transaction cost**sunk cost**marginal cost*the isocost lineCost-of-production theory of valueLong-run cost and production functions*long-run average cost curves*long-run production function and efficiency*returns to scale and isoclines*minimum efficient scale*plant capacityEconomies of densityEconomies of scale*the efficiency consequences of increasing or decreasing the level of productionEconomies of scope*the efficiency consequences of increasing or decreasing the number of different types of products produced, promoted, and distributedOptimum factor allocation*output elasticity of factor costs*marginal revenue product*marginal resource costPricing*various aspects of the pricing decisionTransfer pricing*selling within a multi-divisional companyJoint product pricing*price setting when two products are linkedPrice discrimination*different prices to different buyers*types of price discrimination*yield managementPrice skimming*price discrimination over timeTwo part tariffs*charging a price comprised of two parts, usually an initial fee and an ongoing feePrice points*the effects of a non-linear demand curve on pricingCost-plus pricing*a markup is applied to a cost term in order to calculate price*cost-plus pricing with elasticity considerations*cost plus pricing is often used along with break even analysisRate of return pricing* calculate price based on the required rate of return on investment, or rate of return on salesProfit maximization*determining the optimum price and quantity*the totals approach*the marginal approach
See also microeconomics, Important publications in production theory
|
|
