The Study of Economics

Economics is the study of

how individuals and societies
choose to use the scarce
resources that nature and
previous generations have
provided.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

The Scope of Economics

Microeconomics is the branch of economics
that examines the functioning of individual
industries and the behavior of individual
decision-making unitsthat is, business firms
and households.
Macroeconomics is the branch of economics
that examines the economic behavior of
aggregates income, output, employment, and
so onon a national scale.
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

The Diverse Fields of Economics

Examples of microeconomic and macroeconomic concerns
Microeconomics

Macroeconomics

Production

Prices

Income

Production/Output
in Individual
Industries and
Businesses

Price of Individual
Goods and Services

Distribution of
Employment by
Income and Wealth Individual
Businesses &
Wages in the auto
Industries
industry
Jobs in the steel
Minimum wages
industry
Executive salaries
Number of
Poverty
employees in a
firm

How much steel

How many offices
How many cars

Price of medical
care
Price of gasoline
Food prices
Apartment rents

National
Production/Output

Aggregate Price
Level

Total Industrial
Output
Gross Domestic
Product
Growth of Output

Consumer prices
Producer Prices
Rate of Inflation

2002 Prentice Hall Business Publishing

Employment

National Income
Total wages and
salaries

Employment and
Unemployment in
the Economy

Total corporate
profits

Total number of
jobs
Unemployment
rate

Principles of Economics, 6/e

Karl Case, Ray Fair

The Circular Flow of Economic Activity

The circular flow of

economic activity shows
the connections between
firms and households in
input and output markets.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Input Markets and Output Markets

Output, or product,
markets are the markets
in which goods and
services are exchanged.

Input markets are the

markets in which
resourceslabor, capital,
and landused to
Payments flow in the opposite
direction as the physical flow of
produce products, are
resources, goods, and services
exchanged.
(counterclockwise).

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Karakteristik umum RT secara ekonomi

1. Pemilik faktor produksi dimana balas jasa
atas faktor tersebut menjadi sumber
pendapatannya
2. Memiliki pola perilaku sebagai konsumen
(preferensi,
pertimbangan
kendala
anggaran, keputusan
permintaan)
3. Memiliki
motiv
memaksimalkan
utility/kegunaan/manfaat dari produk yang
dikonsumsinya
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Quantity Demanded

Quantity demanded is the amount

(number of units) of a product that a
household would buy in a given time
period at the current market price.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

The Demand Curve

ANNA'S DEMAND
SCHEDULE FOR
TELEPHONE CALLS
PRICE
(PER
CALL)
$
0
0.50
3.50
7.00
10.00
15.00

2002 Prentice Hall Business Publishing

QUANTITY
DEMANDED
(CALLS PER
MONTH)
30
25
7
3
1
0

The demand curve is

a graph illustrating
how much of a given
product a household
would be willing to
buy at different prices.

Principles of Economics, 6/e

Karl Case, Ray Fair

The Law of Demand

The law of demand
states that there is a
negative, or inverse,
relationship between
price and the quantity of
a good demanded and
its price.

This means that

demand curves slope
downward.
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Determinants of Household Demand

A households decision about the quantity of a particular
output to demand depends on:
The price of the product in question.
The income available to the household.
The households amount of accumulated wealth.
The prices of related products available to the
household.
The households tastes and preferences.
The households expectations about future
income, wealth, and prices.
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Related Goods and Services

Substitutes are goods that can serve as
replacements for one another; when the
price of one increases, demand for the
other goes up. Perfect substitutes are
identical products.
Complements are goods that go
together; a decrease in the price of one
results in an increase in demand for the
other, and vice versa.
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Konsep Demand untuk Perencanaan

Rumah Sakit
Demand terhadap pelayanan kesehatan
merupakan hal penting yang mempengaruhi masa
depan ataupun survival suatu rumah sakit
Lakukan analisis pasar atau peramalan
permintaan. Analisis pasar adalah menyediakan
informasi mengenai keadaan pasar saat ini dan
kemungkinan trend pasar di masa mendatang.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Karakteristik umum Perusahaan secara

ekonomi
1. Melakukan
kegiatan
menawarkannya (supply)

produksi

2. Melakukan permintaan terhadap

factor produksi yang dibutuhkannya

dan
factor-

3. Memiliki motiv memaksimalkan keuntungan

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Fungsi produksi
Fungsi Produksi:
Hubungan teknis antara jumlah input dan output
pada penggunaan tingkat teknologi tertentu.

Q = f(x1, x2, x3,..., xn)

Q = tingkat produksi/ouput/keluaran
x1,x2,...,xn = berbagai input/faktor produksi yang
digunakan
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Sifat Faktor Produksi

Faktor yang mudah diubah (bahan baku,

karyawan lepas, bahan bakar)
Faktor yang tidak mudah diubah-ubah (gedung,
tanah, mesin, alat-alat besar).
Jangka waktu yang tidak memungkinkan produsen
untuk mengubah ubah besarnya beberapa
faktor produksi = jangka pendek
Sedangkan jangka panjang = Jangka waktu yang
memungkinkan produsen untuk mengubah
ubah besarnya beberapa faktor produksi

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

The Behavior of
Profit-Maximizing Firms
The three decisions that all firms
must make include:
1.

2.

3.

How much
output to
supply

Which
production
technology to
use

How much of
each input to
demand

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

The Supply Curve and

the Supply Schedule

CLARENCE BROWN'S
SUPPLY SCHEDULE
FOR SOYBEANS

PRICE
(PER
BUSHEL)
$
2
1.75
2.25
3.00
4.00
5.00

QUANTITY
SUPPLIED
(THOUSANDS
OF BUSHELS
PER YEAR)
0
10
20
30
45
45

2002 Prentice Hall Business Publishing

Price of soybeans per bushel ($)

A supply curve is a graph illustrating how much

of a product a firm will supply at different prices.
6
5
4
3
2
1
0
0

10

20

30

40

Thousands of bushels of soybeans

produced per year
Principles of Economics, 6/e

Karl Case, Ray Fair

50

Price of soybeans per bushel ($)

The Law of Supply

The law of supply
states that there is a
positive relationship
between price and
quantity of a good
supplied.

6
5
4
3
2
1
0
0

10

20

30

40

Thousands of bushels of soybeans

produced per year

2002 Prentice Hall Business Publishing

50

This means that

supply curves
typically have a
positive slope.

Principles of Economics, 6/e

Karl Case, Ray Fair

Determinants of Supply
The price of the good or service.
The cost of producing the good, which in
turn depends on:
The price of required inputs (labor,

capital, and land),

The technologies that can be used to

produce the product,

The prices of related products.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Profits and Economic Costs

Profit (economic profit) is the difference

between total revenue and total cost.

Total revenue is the amount received from the

sale of the product:
(q X P)

Total cost (total economic cost) is the total of

1. Out of pocket costs (Biaya
yang
(

membutuhkan pengeluaran kas)

2. Normal rate of return on capital, and

3. Opportunity cost of each factor of production.
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Biaya-biaya Dalam Jangka Pendek

Fixed cost adalah biaya yg tdk tergantung
besaran produksi. Biaya ini tetap ada
walaupun perusahaan tdk melakukan
kegiatan produksi
Variable cost adalah biaya yang
tergantung pada besaran produksi.

TC TFC TVC

Total Cost = Total Fixed + Total Variable

Cost
Cost
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Marginal Cost
Marginal cost (MC) is the increase
in total cost that results from
producing one more unit of output.
Marginal cost reflects changes in
variable costs.

TC
TFC
TVC
M C

Q
Q
Q
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Total Revenue (TR) and

Marginal Revenue (MR)
Total revenue (TR) is the total amount that a firm
takes in from the sale of its output.

TR P q
Marginal revenue (MR) is the additional revenue
that a firm takes in when it increases output by
one additional unit.
In perfect competition, P = MR.

TR
P (q )
M R
P

q
q
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Maksimisasi profit dalam jangka pendek

2 cara:
1.Membandingkan TR dg TC
2.Menunjukan posisi MR = MC

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Pembuktian matematis
Maksimisasi Keuntungan
Dalam masalah optimisasi ada fungsi obyektif yang harus dibuat. Misal
perusahaan ingin mendapat keuntungan maksimum yaitu maksimalisasi
perbedaan antara penerimaan dengan biaya. TR dan TC masing-masing
merupakan fungsi dari variabel yang sama yaitu Q.
Laba () = TR - TC , karena TR = f(Q) dan TC = f(Q) maka
p = f (Q). Optimum dicapai apabila turunan pertama sama dengan nol.

= TR - TC maka

d /dQ = dR/dQ - dC/dQ

= MR - MC
Optimum d /dQ

= 0 maka

MR - MC = 0

jadi
MR
2002 Prentice Hall Business Publishing

= MC
Principles of Economics, 6/e

Karl Case, Ray Fair

Efficiency

Efficiency is the condition

in which the economy is
producing what people
want at the least possible
cost.

2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair

Cost-Minimizing Input Choices

Mathematically, we seek to minimize total costs given q =
f( k ,l ) = q 0
Setting up the Lagrangian:
L = wl + vk + [q0 - f(k,l)]
First order conditions are
L/l = w - (f/l) = 0
L/k = v - (f/k) = 0
L/ = q0 - f(k,l) = 0
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

27
Karl Case, Ray Fair

w
fv/klR

T
S
(lfork)

Cost-Minimizing Input Choices

Dividing the first two conditions we get

The cost-minimizing firm should equate

the RTS for the two inputs to the ratio of
their prices

28
2002 Prentice Hall Business Publishing

Principles of Economics, 6/e

Karl Case, Ray Fair