A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Producers in Perfectly Competitive Markets
Producer behavior is modeled on assumptions similar to consumer behavior. The assumptions generalize how producers approach production decisions. Production has a technical touch while costs are at the core of microeconomics. Classical factors of production are land, labor, and capital. In construction, land is primarily the base on which contractors build. The production function is nothing but a nominal definition of the efficient border of a technology, that is, of the production possibility frontier. Costs play a very important role in markets. Fixed costs do not vary with output, while variable costs change depending on the output level. However, what factors of production a producer cannot sell today – and what therefore are fixed assets – can in fact be sold eventually. The production function together with the cost curves lead to the supply of a single firm and then to the aggregated supply of an industry.
Producers in Perfectly Competitive Markets
Producer behavior is modeled on assumptions similar to consumer behavior. The assumptions generalize how producers approach production decisions. Production has a technical touch while costs are at the core of microeconomics. Classical factors of production are land, labor, and capital. In construction, land is primarily the base on which contractors build. The production function is nothing but a nominal definition of the efficient border of a technology, that is, of the production possibility frontier. Costs play a very important role in markets. Fixed costs do not vary with output, while variable costs change depending on the output level. However, what factors of production a producer cannot sell today – and what therefore are fixed assets – can in fact be sold eventually. The production function together with the cost curves lead to the supply of a single firm and then to the aggregated supply of an industry.
Producers in Perfectly Competitive Markets
Brockmann, Christian (author)
Construction Microeconomics ; 67-96
2023-02-28
30 pages
Article/Chapter (Book)
Electronic Resource
English
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