Transcript sr & lr
Production in Short Run & Long Run © 香港有效教學協會 (HKETA) 2009 Teaching Flow: Define variable factors & fixed factors Define short run & long run Introduce 3 concepts related to output: TP, AP & MP Formula + Calculation Introduce Law of diminishing marginal returns Drilling of Past-paper Introduce three concepts related to cost: TC, AC, MC Drilling of Past-paper Helping students to tackle difficulties in learning this topic © 香港有效教學協會 (HKETA) 2009 © 香港有效教學協會 (HKETA) 2009 What do you think about the major objective of the above bakery? © 香港有效教學協會 (HKETA) 2009 1. Flour, butter, eggs etc. 2. Cooking utensils 3. Machinery 4. Bakers 5. Shops 6. …….. © 香港有效教學協會 (HKETA) 2009 Please classify the above factors of production according to your previous knowledge. © 香港有效教學協會 (HKETA) 2009 Can you remember the factors of production? Land Capital Labour Entrepreneur © 香港有效教學協會 (HKETA) 2009 © 香港有效教學協會 (HKETA) 2009 3 months later… Suppose the sales of the bakery doubled… © 香港有效教學協會 (HKETA) 2009 Increase the output level by employing more factors of production. © 香港有效教學協會 (HKETA) 2009 Think deeper: Would you immediately employ more workers, buy more raw materials and expand shops to accommodate the increase in demand? Why? © 香港有效教學協會 (HKETA) 2009 2. Will your strategies be different under the following situations: (a) Many people line-up to buy cheese cake from the bakery because of a famous TV program. (b) Many people move in the new residential estate in this district. © 香港有效教學協會 (HKETA) 2009 Which factors do you think we need to increase with output level? A. To meet temporary changes Buy more raw materials Request existing workers to work overtime, Employ more part-time workers Use more electricity… Labour Variable factors Fixed factors Raw materials Oven Bakery Premises Entrepreneur Introduce the concepts of variable & fixed factors, illustrate the concept of short run. B. To meet permanent changes Increase the employment of ALL factors E.g. labour, raw materials, bakery premises, etc. Invite more owners to invest… Labour Variable factors Raw materials Oven Bakery Premises Entrepreneur Fixed factors Introduce the concepts of variable & fixed factors, illustrate the concept of long run.