BACAAN PERTEMUAN 4- Ekonomi Teknologi

1Worksheet Assignments

Scarcity

APEC 308 APEC 308 Quantitative Applied EconomicsQuantitative Applied Economics

Wilder Ferreira, M.S. Wilder Ferreira, M.S. Clemson University, SCClemson University, SC

Computer Applications for Applied Economic Decision Analysis in Agribusiness

ScarcityComputer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design

Introduction to Economics

Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency

Monopolistic Competition

Investment Decisions

Scarcity

International Trade

Optimization Models

z In Agribusiness, as in many other industries, the resources are scarce.

z Scarcity can be defined as a condition in which resources are not available to satisfy all the needs and wants of a specified group of people.

z Scarcity is the lack of enough resources to satisfy all desired uses of those resources.

z Scarcity the imbalance between our desires and available resourcesforces us to make economic choices.

Opportunity Cost

z Every time we choose to use scarce resources in one way we give up the opportunityopportunity to use them in other ways.

z Opportunity cost is the most desired goods or services that are forgone in order to obtain something else.

z It is what is given up in order to get something else.

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Production possibilities are the alternative combination of final goods and services that could be produced in a given period of time with all available resources and technology.

z Each point on the production possibilities curve depicts an alternative mix of output.

Production PossibilitiesComputer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Production Possibilities Curve

A

B

C

D

E

F

OUTP

UT O

F SH

OES

5

4

3

2

1

0 1 2 3 4 5OUTPUT OF TELEVISIONS

Production possibilities illustrates two essential principles.Computer BasicsMaking a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Scarce resources theres a limit to the amount we can produce in a given time period with available resources and technology.

z Opportunity costs we can obtain additional quantities of any desired good only by reducing the potential production of another good.

Production Possibilities CurveComputer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

2Increasing Opportunity CostsWe must give up increasing amounts of other goods to get more of a particular good.Why the increase? Mostly because it is difficult to move resources from one industry to another.

Step 1: give up one shoe

Step 2: get two TVs

Step 3: give up another shoe

Step 4: get one more TV

AB

CD

EF

OUTP

UT O

F SH

OES

5

4

3

2

1

0 1 2 3 4 5OUTPUT OF TELEVISIONS

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Efficiency means getting the maximum output of a good from the resources used in production.

z Every point on a production possibilities curves is efficient and indicates full employment of all resources.

EfficiencyComputer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Inefficiency A production possibilities curves shows potential output, not necessarily actual output. Theres no guarantee that resources will always be used efficiently.

OUTPUT OF TELEVISIONS

AB

CY

54321

0 1 2 3 4 5

OUTP

UT O

F SH

OES

Unemployment

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Unreachable Production A point outsideoutside the production possibilities curve suggests that we could get moremore goods than we are capable of producing! All output combinations that lie outside the production possibilities curve are unattainable with current resources and technology.

OUTPUT OF TELEVISIONS

AB

C

X54321

0 1 2 3 4 5

OUTP

UT O

F SH

OES

Currently not attainable

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Your boss, at Gamecock Tractors Inc., was happy with you for figuring out his customers Total Utility of 28.125. But, he cannot make production decisions based on a single customer only. The profit analysis helped him decide the optimal production when MR=MC. He needs more information.

z Given current resources and technology, he is asking you to analyze the combinations of products A and B that can be produced using a given level of input through the use of a production possibilities curve.

z The input level to be used is 10 units of labor. This limited resource available will allow for the increase of production of one product WHILE the production of the other product decreases.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Construct a line or XY (scatter) chart showing the production possibilities curve for products A and B. Use quantities of good A (Q(A)) as the x-axis.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

3Quiz 96: When the company is producing 32,000 units of good A and 20,000 unit of good B, what do you conclude? Is it good or bad for your boss?Resources are not fully employed. Inefficiencies exist. It is bad. He has to improve efficiency to the point where labor is fully utilized. He is losing money.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Quiz 97: When the company is producing 24,000 units of A and 36,000 units of B, the opportunity cost of producing 4,000 more units of good A is fewer than, greater than or the same as the decreasing units of good B?The opportunity cost is the same as the decreasing units of good B (32,000 28,000 = 4,000 units)


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Quiz 98: Producing more than 28,000 units of good A, does its opportunity cost increase or decrease? Why? Would you favor this situation?It increases in terms of good B. More and more units of good B are required to be given up production in order to favor the production of good A. Yes, if productivity of good B per labor used increase to avoid this situation.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Economic Growth Production possibilities increase with more resources or better technology. The production possibilities curve shifts outward.

Economic growthEconomic growth is an increase in output (real GDP) an expansion of production possibilities. It occurs when a society acquires new resources (larger labor force or increased capital stock) or when society learns to produce more with existing resources (technological change, innovation, or new equipment).

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Economic Growth

OUTPUT OF TELEVISIONS 0

PP1

PP2

OUTP

UT O

F SH

OES

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Economic Measures Measuring opportunity costopportunity cost along a production possibility curve:

To measure (average per unit) opportunity costs between two points along a production possibility curve divide the number ofunits lost (as a result of moving along the PPC) by the number of units gained.

Quantity Lost Opportunity Cost = -------------------------------

Quantity Gained

Measuring total revenuetotal revenue along a production possibility curve:

Total Revenue = Price A * Quantity A + Price B * Quantity B

Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

4z Your boss, at Gamecock Tractors Inc., now knows how production possibilities may affect his business in the future if new technology comes into play.

z You must tell him more about the production possibilities frontier when advances in productivity take place in his company. He wants to know if it would be required to adjust capacity.

Advance in Technology Computer Basics

Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

z Construct a line or XY (scatter) chart showing the production possibilities curves for products A and B before the advance in technology and after the advance. On the chart, show Q(B) and Q(B). Use quantities of good A (Q(A)) as the x-axis.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Quiz 99: Comparing Q(B) to Q(B), what is the effect on production of good B when production of good A is at 24,000 units?The new production possibilities curve that has been shifted outward now allows for the firm to produce 40,500 units of good B as opposed to 36,000 units.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

Quiz 100: Compare revenues for both curves when producing 20,000 units of product A. Price of A is $5 and B is $10. Does total revenue increase?

Quiz 101: Compare opportunity costs (OC) for both curves when increasing production of product A from 20,000 to 24,000 units? Are the opportunity costs the same?

Before advance in Technology: TR = 20,000 * 5 + 39,000 * 10 = $490,000. After the advance in Technology: TR = 20,000 * 5 + 44,000 * 10 = $540,000. Yes.

Before advance in Technology: OC = (39,000 36,000) / (24,000 20,000) = 3,000 / 4,000 = 0.75. After the advance in Technology: OC = (44,000 40,500) / (24,000 20,000) = 3,500 / 4,000 = 0.88. No. At this particular movement on the curve, the more technology, the more opportunity cost to produce product A. Less OC to produce product B.


Making a Worksheet

Special Features

Charts Manipulation

Data Manipulation

Worksheet Design


Supply and Demand

Elasticity

Consumer Choice

Production and Cost

Perfect Competition

Market Efficiency



Scarcity

International Trade

Optimization Models

BACAAN PERTEMUAN 4- Ekonomi Teknologi

Documents

Transcript of BACAAN PERTEMUAN 4- Ekonomi Teknologi