tt Forest production
Forest Production
Forest Production 1. HARVESTING COSTS IN THE SOUTH 2. PRODUCTION THEORY 3. PRODUCTION AND COST OF HARVESTING SOUTHERN TIMBER 4. CONCLUSION
Forest Production 1. HARVESTING COSTS IN THE SOUTH 2. PRODUCTION THEORY 3. PRODUCTION AND COST OF HARVESTING SOUTHERN TIMBER 4. CONCLUSION
HARVESTING COSTS IN THE SOUTH o Cubbage(1983) Harvesting System Simulator (Stuart 1981) o Wang et al. (1998) GIS modelling framework o Kluender et al(1998)removal intensity and tree size on harvesting costs and profitability
HARVESTING COSTS IN THE SOUTH u Cubbage(1983) Harvesting System Simulator (Stuart 1981) u Wang et al.(1998) GIS modelling framework u Kluender et al.(1998) removal intensity and tree size on harvesting costs and profitability
PRODUCTION THEORY e Production functions ◆ Cost functions ◆ Revenue functions ◆ Profit functions o Input-Input Relationships oProduct-Product Relationships
PRODUCTION THEORY uProduction Functions uCost Functions uRevenue Functions uProfit Functions uInput-Input Relationships uProduct-Product Relationships
PRODUCTION THEORY e Production functions A production function is a basic input output relationship that describes a biophysical relationship or production process y=f(x)
PRODUCTION THEORY uProduction Functions uA production function is a basic input- output relationship that describes a biophysical relationship or production process y f (x)
PRODUCTION THEORY Average Product APxi= y X Marginal product MPri= axi Elasticity of Production Oy xi Oxi y
PRODUCTION THEORY Average Product Marginal Product Elasticity of Production xi y APxi xi y MPxi y xi xi y i
PRODUCTION THEORY ◆ Cost functions e Cost functions represent the minimum cost of producing a good or service at gIven input prices. c(w,y)=min wx
PRODUCTION THEORY uCost Functions uCost functions represent the minimum cost of producing a good or service at given input prices. c(w, y) min wx
PRODUCTION THEORY C MC ac AVC O Q Firm’ s supply curve
PRODUCTION THEORY Firm’s supply curve
PRODUCTION THEORY ◆ Revenue functions o Revenue functions represent the maximum revenue that can be derived from given output prices and a set of inputs R(p, x)=max p
PRODUCTION THEORY uRevenue Functions uRevenue functions represent the maximum revenue that can be derived from given output prices and a set of inputs. R( p, x) max py
PRODUCTION THEORY TR Ar OTR Mr AR=MR=P
PRODUCTION THEORY y TR AR y TR MR AR MR p
