Production, costs, and pricing

(Production, in macroeconomics, is measured by Gross domestic product and other measures of national income and output.)

Aspects of Production and Pricing Theory

• Production theory basics
  • production efficiency
  • factors of production
  • total, average, and marginal product curves
  • marginal productivity
  • isoquants
  • the marginal rate of technical substitution
• Production possibility frontier
  • what products are possible given your resources
  • the trade-off between producing one product rather than another
  • the marginal rate of transformation
• Production function
  • inputs
  • diminishing returns to inputs
  • the stages of production
  • shifts in a production function
• Cost theory
  • the different types of costs
    • opportunity cost
    • accounting cost or historical costs
    • transaction cost
    • sunk cost
    • marginal cost
  • the isocost line
• Cost-of-production theory of value
• Long-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 capacity
• Economies of scale
  • the effeciency consequences of increasing or decreasing the level of production
• Economies of scope
  • the efficiency consequences of increasing or decreasing the number of different types of products produced, promoted, and distributed
• Optimum factor allocation
  • output elasticity of factor costs
  • marginal revenue product
  • marginal resource cost
• Pricing
  • various aspects of the pricing decision
• Transfer pricing
  • selling within a multi-divisional company
• Joint product pricing
  • price setting when two products are linked
• Price discrimination
  • different prices to different buyers
  • types of price discrimination
  • yield management
• Price skimming
  • price discrimination over time
• Two part tariffs
  • charging a price comprised of two parts, usually an initial fee and an ongoing fee
• Price points
  • the effects of a non-linear demand curve on pricing
• Cost-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 analysis
• Rate of return pricing
  • calculate price based on the a required rate of return on investment, or rate of return on sales
• Profit maximization
  • determining the optimum price and quantity
  • the totals approach
  • the marginal approach

See also : microeconomics

List of Marketing Topics	List of Management Topics
List of Economics Topics	List of Accounting Topics
List of Finance Topics	List of Economists

Referenced By