https://gdpark.blog/tags/production-function/Recent content in Production Function on gdpark.blogHugoenSun, 08 Jan 2017 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-10-stylized-facts-of-economic-growth/Thu, 14 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-10-stylized-facts-of-economic-growth/We’re finally zooming out to the long run — why do some countries keep winning? Enter Solow’s aggregate production function Y = F(K, N), and the real fun begins.https://gdpark.blog/posts/macroeconomics-12-the-cobb-douglas-production-function/Fri, 15 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-12-the-cobb-douglas-production-function/We finally pin down that vague f(K/N) with the Cobb-Douglas production function and crank through the math to get a concrete steady-state output formula.https://gdpark.blog/posts/macroeconomics-13-solow-residual-a-macroeconomic-approach-to-technological-pro/Sat, 16 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-13-solow-residual-a-macroeconomic-approach-to-technological-pro/We finally stop pinning labor productivity A at 1, bundle it with N into ’effective labor’ AN, and roll into the Solow residual framework for thinking about tech progress.https://gdpark.blog/posts/microeconomics-24-isoquants/Sun, 17 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-24-isoquants/We bring K back into the picture, plot the whole Q = f(L, K) surface in 3D, then slice it to see what isoquants actually are — infinite (L, K) combos that spit out the same output.https://gdpark.blog/posts/microeconomics-28-returns-to-scale/Mon, 18 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-28-returns-to-scale/We dig into the 3D production function to figure out why doubling a factory isn’t the same as building a new one — and how increasing, decreasing, and constant returns to scale all shake out.https://gdpark.blog/posts/microeconomics-35-cost-minimization-with-three-variables/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-35-cost-minimization-with-three-variables/Adding a third input M sounds fancy, but once you pin K as a fixed cost the whole 3D problem just collapses back into the same old 2D setup — same playbook, every time.https://gdpark.blog/posts/microeconomics-36-total-cost-marginal-cost-and-average-cost/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-36-total-cost-marginal-cost-and-average-cost/Wait, cost curves again?! Nope — this time we’re plotting minimum TC against Q, then eyeballing derivatives to build the marginal and average cost curves from scratch.https://gdpark.blog/posts/microeconomics-37-long-run-cost-minimization-with-cobb-douglas/Wed, 20 Jul 2016 00:00:00 +0000https://gdpark.blog/posts/microeconomics-37-long-run-cost-minimization-with-cobb-douglas/We pin down TC, MC, and AC for a Cobb-Douglas production function and find they all collapse to the same constant α — constant returns to scale is why.https://gdpark.blog/posts/microeconomics-48-chapter-6-practice-problems/Sat, 07 Jan 2017 00:00:00 +0000https://gdpark.blog/posts/microeconomics-48-chapter-6-practice-problems/Working through Chapter 6 problems on production functions — filling tables, sketching graphs, and hunting down where average product, marginal product, and total product each hit their max.https://gdpark.blog/posts/microeconomics-49-chapter-7-practice-problems/Sun, 08 Jan 2017 00:00:00 +0000https://gdpark.blog/posts/microeconomics-49-chapter-7-practice-problems/Working through Chapter 7 cost-minimization problems with gradients and isoquants — turns out it’s the exact same math as the utility-function stuff, just with different names.