Page 21 - Microeconomics, Fourth Edition
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CONTENTS xix
Economic and Uneconomic Regions Comparative Statics: Short-Run Input Demand
of Production 216 versus Long-Run Input Demand 273
Marginal Rate of Technical Substitution 217 More Than One Variable Input in the
6.4 Substitutability among Inputs 219 Short Run 274
Describing a Firm’s Input Substitution Opportunities APPENDIX Advanced Topics in Cost
Graphically 220 Minimization 281
Elasticity of Substitution 222 LEARNING-BY-DOING EXERCISES
Special Production Functions 225
7.1 Using the Cost Concepts for a College Campus
6.5 Returns to Scale 230 Business 252
Definitions 230 7.2 Finding an Interior Cost-Minimization
Returns to Scale versus Diminishing Marginal Optimum 258
Returns 233 7.3 Finding a Corner Point Solution with Perfect
6.6 Technological Progress 233 Substitutes 259
7.4 Deriving the Input Demand Curves from a Production
APPENDIX The Elasticity of Substitution for a
Cobb–Douglas Production Function 243 Function 267
7.5 Short-Run Cost Minimization with One
LEARNING-BY-DOING EXERCISES Fixed Input 274
6.1 Deriving the Equation of an Isoquant 216 7.6 Short-Run Cost Minimization with Two Variable
6.2 Relating the Marginal Rate of Technical Substitution Inputs 275
to Marginal Products 219
6.3 Calculating the Elasticity of Substitution from CHAPTER 8 Cost Curves 285
a Production Function 223
How Can HiSense Get a Handle on Costs?
6.4 Returns to Scale for a Cobb–Douglas Production
Function 232 8.1 Long-Run Cost Curves 287
6.5 Technological Progress 235 Long-Run Total Cost Curve 287
How Does the Long-Run Total Cost Curve Shift When
CHAPTER 7 Costs and Cost Minimization 245 Input Prices Change? 289
What’s Behind the Self-Service Revolution? Long-Run Average and Marginal Cost Curves 292
7.1 Cost Concepts for Decision Making 247 8.2 Short-Run Cost Curves 302
Short-Run Total Cost Curve 302
Opportunity Cost 247
Relationship Between the Long-Run and the Short-Run
Economic versus Accounting Costs 250
Total Cost Curves 303
Sunk (Unavoidable) versus Nonsunk (Avoidable)
Short-Run Average and Marginal Cost Curves 305
Costs 251
Relationships Between the Long-Run and the Short-Run
7.2 The Cost-Minimization Problem 253
Average and Marginal Cost Curves 306
Long Run versus Short Run 253
When Are Long-Run and Short-Run Average and Marginal
The Long-Run Cost-Minimization Problem 254
Costs Equal, and When Are They Not? 307
Isocost Lines 255
8.3 Special Topics in Cost 310
Graphical Characterization of the Solution to the
Economies of Scope 310
Long-Run Cost-Minimization Problem 256
Economies of Experience: The Experience
Corner Point Solutions 258
Curve 313
7.3 Comparative Statics Analysis of the
Cost-Minimization Problem 260 8.4 Estimating Cost Functions 315
Constant Elasticity Cost Function 316
Comparative Statics Analysis of Changes in
Translog Cost Function 316
Input Prices 260
Comparative Statics Analysis of Changes APPENDIX Shephard’s Lemma and Duality 323
in Output 264 LEARNING-BY-DOING EXERCISES
Summarizing the Comparative Statics Analysis:
8.1 Finding the Long-Run Total Cost Curve from a
The Input Demand Curves 265 Production Function 288
The Price Elasticity of Demand
8.2 Deriving Long-Run Average and Marginal Cost
for Inputs 267 Curves from a Long-Run Total Cost Curve 294
7.4 Short-Run Cost Minimization 269 8.3 Deriving a Short-Run Total Cost Curve 303
Characterizing Costs in the Short Run 270 8.4 The Relationship between Short-Run and Long-Run
Cost Minimization in the Short Run 272 Average Cost Curves 308
