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Production, costs, and pricing

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Title: Production, costs, and pricing  
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Subject: Material, Economic unit, Output (economics), Traditional engineering, Cobweb model, Neomercantilism, Hakusensha, Insourcing, Net output, Heckscher–Ohlin theorem
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Production, costs, and pricing

For concepts relating to production in macroeconomics, see gross domestic product and measures of national income and output.

The following outline is provided as an overview of and topical guide to industrial organization:

Industrial organization – describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions. Issues underlying these decisions range from classical issues such as opportunity cost to neoclassical concepts such as factors of production.



Main article: History of industrial organization


Production side of Industry:

  • Production function
    • inputs
    • diminishing returns to inputs
    • the stages of production
    • shifts in a production function
  • Production possibility frontier
    • what products are possible given a set of resources
    • the trade-off between producing one product rather than another
    • the marginal rate of transformation

Cost side of Industry:

  • Economies of density
    • Economies of scale
      • the efficiency 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.
    • Network effect
      • the effect that one user of a good or service has on the value of that product to other people.
  • Profit maximization
    • determining the optimum price and quantity
    • the totals approach
    • marginal approach of production


See also


  • Nicolas Boccard (2010), "Industrial Organization, a Contract Based approach (aka IOCB)”, Open Source Textbook

External links

  • Industrial Organization Society
  • , by Kenneth G. Elzinga
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