经济学专业英语教程（精编版）（第二版）课件：Cost of Production

《经济学专业英语教程

（精编版）（第二版）》

Text:CostofProduction

（生产成本）1.Keywords2.Whatarecosts?3.Thevariousmeasuresofcost4.Questionsprofit-maximizingfirmtotalcostopportunitycostexplicitcostimplicitcostcashoutlaykeepingtrackofthemoneyfinancialstatementfinancialcapitalinterestrateeconomicprofitaccountingprofitfinancialreportnormalprofitfixedcostvariablecostaveragetotalcostaveragefixedcostaveragevariablecostmarginalcostprivatecostsocialcostsocialbenefit1.Keywords2.1Totalrevenue,totalcost,andprofit2.2Costsasopportunitycosts2.3Thecostofcapitalasanopportunitycost2.4Economicprofitversusaccountingprofit2.Whatarecosts?TotalrevenueTheamountthatthefirmreceivesforthesaleofitsoutputiscalleditstotalrevenue.Itequalsthequantityofoutputthefirmproducestimesthepriceatwhichitsellsitsoutput.TotalcostTheamountthatthefirmpaystobuyinputsiscalleditstotalcost.ProfitProfitisafirm’stotalrevenueminusitstotalcost.Thatis,Profit=Totalrevenue–Totalcost.2.1Totalrevenue,totalcost,andprofit2.2.1Definitionofopportunitycosts2.2.2Explicitandimplicitcosts2.2.3Differencebetweeneconomistsandaccountants2.2CostsasopportunitycostsTheopportunitycostofanitemreferstoallthosethingsthatmustbeforgonetoacquirethatitem.Wheneconomistsspeakofafirm’scostofproduction,theyincludealltheopportunitycostsofmakingitsoutputofgoodsandservices.2.2.1DefinitionofopportunitycostsExplicitcostsSomecostsrequirethefirmtopayoutsomemoney,theyarecalledexplicitcosts.ImplicitcostsSomeofafirm’sopportunitycosts,calledimplicitcosts,donotrequireacashoutlay.2.2.2ExplicitandimplicitcostsThedistinctionbetweenexplicitandimplicitcostshighlightsanimportantdifferencebetweenhoweconomistsandaccountantsanalyzeabusiness.Economistsareinterestedinstudyinghowfirmsmakeproductionandpricingdecisions.Becausethesedecisionsarebasedonbothexplicitandimplicitcosts,economistsincludebothwhenmeasuringafirm’scosts.Bycontrast,accountantshavethejobofkeepingtrackofthemoneythatflowsintoandoutoffirms.Asaresult,theymeasuretheexplicitcostsbutoftenignoretheimplicitcosts.2.2.3DifferencebetweeneconomistsandaccountantsAnimportantimplicitcostofalmosteverybusinessistheopportunitycostofthefinancialcapitalthathasbeeninvestedinthebusiness.2.3Thecostofcapitalasanopportunitycost2.4.1Economicprofit2.4.2Accountingprofit2.4.3Normalprofit2.4EconomicprofitversusaccountingprofitAneconomistmeasuresafirm’seconomicprofitasthefirm’stotalrevenueminusalltheopportunitycosts(explicitandimplicit)ofproducingthegoodsandservicessold.Forabusinesstobeprofitablefromaneconomist’sstandpoint,totalrevenuemustcoveralltheopportunitycosts,bothexplicitandimplicit.2.4.1EconomicprofitAnaccountantmeasuresthefirm’saccountingprofitasthefirm’stotalrevenueminusonlythefirm’sexplicitcosts.Noticethatbecausetheaccountantignorestheimplicitcosts,accountingprofitisusuallylargerthaneconomicprofit.2.4.2AccountingprofitEconomistscallazeroeconomicprofitasnormalprofit.Normalprofitistheminimumprofitnecessarytokeepafirminoperation.Zeroeconomicprofitsignifiesthereisjustenoughtotalrevenuetopaytheownersforallexplicitandimplicitcosts.Stateddifferently,thereisnobenefitfromreallocatingresourcestoanotheruse.2.4.3Normalprofit3.1Fixedandvariablecosts3.2Averageandmarginalcost3.3Privatecostsandsocialcosts3.ThevariousmeasuresofcostFixedcostsSomecosts,calledfixedcosts,donotvarywiththequantityofoutputproduced.Theyareincurredevenifthefirmproducesnothingatall.VariablecostsSomeofthefirm’scosts,calledvariablecosts,changeasthefirmaltersthequantityofoutputproduced.TotalcostAfirm’stotalcostisthesumoffixedandvariablecosts.

3.1Fixedandvariablecosts3.2.1Averagetotalcost3.2.2Averagefixedcost3.2.3Averagevariablecost3.2.4Marginalcost

3.2AverageandmarginalcostAveragetotalcostdividedbythequantityofoutputiscalledaveragetotalcost.Becausetotalcostisjustthesumoffixedandvariablecosts,averagetotalcostcanbeexpressedasthesumofaveragefixedcostandaveragevariablecost.Averagetotalcosttellsusthecostofatypicalunitofoutputiftotalcostisdividedevenlyoveralltheunitsproduced.

3.2.1AveragetotalcostAveragefixedcostisthefixedcostdividedbythequantityofoutput.

3.2.2AveragefixedcostAveragevariablecostisthevariablecostdividedbythequantityofoutput.

3.2.3AveragevariablecostMarginalcost=Changeintotalcost/ChangeinquantityMarginalcosttellsustheincreaseintotalcostthatarisesfromproducinganadditionalunitofoutput.

3.2.4Marginalcost3.3.1Privatecosts3.3.2Socialcosts

3.3PrivatecostsandsocialcostsTheprivatecostsofafirmarethesumoftheexplicitandimplicitcoststhatitincurs.

3.3.1PrivatecostsThesocialcostsofafirmarethosethatsocietyingeneralbearsbecauseofthefirm’sactivities.Socialcostswouldincludetheprivatecostsofafirm,sincepresumablyallofthefirm’sresourcescouldbeusedelsewhereinproducinggoodsofvalueto(atleas