TEORI PRODUKSI

• Produksi adalah proses yang men-

transformasi-kan input seperti
modal, peralatan, tenaga kerja, dan
tanah menjadi output - barang dan
jasa.
• Dalam proses produksi, produsen
memperhatikan efisiensi dalam
penggunaan input.
- technical vs. economical efficiency 1
Dua Konsep Efisiensi
• Economic efficiency:
– Terjadi ketika biaya untuk
menghasilkan output yang diberikan
serendah mungkin.
• Technological efficiency:
– Terjadi ketika tidak mungkin untuk
meningkatkan output tanpa
menambah input.

2
Teori produksi dasar hanyalah
aplikasi pengoptimalan dengan
kendala:
Perusahaan mencoba untuk meminimalkan
biaya produksi pada tingkat output tertentu

atau

untuk memaksimalkan keluaran yang dapat

dicapai dengan tingkat biaya tertentu.

Kedua masalah pengoptimalan tersebut

mengarah pada aturan yang sama untuk
alokasi input dan pilihan teknologi
3
 Fungsi Produksi
• Fungsi produksi adalah murni hubungan
teknis antara input dengan output.
Menjelaskan transformasi input menjadi
output pada periode waktu tertentu.
Q = f( L,K,R,Ld,T,t)
Dimana:
Q = output R= Raw Material
L= Labour Ld = Land
K= Capital T = Technology
t = time

For our current analysis, let’s reduce the inputs to

two, capital (K) and labor (L):
4
Q = f(L, K)
 Tabel Produksi
Units of K
Employed Output Quantity (Q)
8 37 60 83 96 107 117 127 128
7 42 64 78 90 101 110 119 120
6 37 52 64 73 82 90 97 104
5 31 47 58 67 75 82 89 95
4 24 39 52 60 67 73 79 85
3 17 29 41 52 58 64 69 73
2 8 18 29 39 47 52 56 52
1 4 8 14 20 27 24 21 17
1 2 3 4 5 6 7 8
Units of L Employed
Q yang sama dapat diproduksi dengan kombinasi input
yang berbeda, misalnya: input dapat diganti dalam
beberapa kombinasi. 5
 Short-Run and Long-Run
Production
• In the short run some inputs are
fixed and some variable
– Misalnya perusahaan mungkin dapat
memvariasikan jumlah tenaga kerja,
tetapi tidak dapat mengubah jumlah
modal.
– in the short run we can talk about
factor productivity / law of variable
proportion / law of diminishing returns
6
• In the long run all inputs become
variable
– Misalnya jangka panjang adalah
periode di mana perusahaan dapat
menyesuaikan semua input ke
kondisi yang berubah (variabel)
– in the long run we can talk about
returns to scale

7
 Short-Run Changes in
Production
Factor Productivity
Units of K
Employed Output Quantity (Q)
8 37 60 83 96 107 117 127 128
7 42 64 78 90 101 110 119 120
6 37 52 64 73 82 90 97 104
5 31 47 58 67 75 82 89 95
4 24 39 52 60 67 73 79 85
3 17 29 41 52 58 64 69 73
2 8 18 29 39 47 52 56 52
1 4 8 14 20 27 24 21 17
1 2 3 4 5 6 7 8
Units of L Employed

Berapa kuantitas Q berubah, ketika

kuantitas L dinaikkan ? 8
 Long-Run Changes in
Production
Returns to Scale
Units of K
Employed Output Quantity (Q)
8 37 60 83 96 107 117 127 128
7 42 64 78 90 101 110 119 120
6 37 52 64 73 82 90 97 104
5 31 47 58 67 75 82 89 95
4 24 39 52 60 67 73 79 85
3 17 29 41 52 58 64 69 73
2 8 18 29 39 47 52 56 52
1 4 8 14 20 27 24 21 17
1 2 3 4 5 6 7 8
Units of L Employed

Berapa kuantitas Q berubah, ketika kuantitas

L dan K ditingkatkan?
9
 Relationship Between Total,
Average, and Marginal Product:
Short-Run Analysis

• Total Product (TP) = total quantity

of output

• Average Product (AP) = total

product per total input

• Marginal Product (MP) = change

in quantity when one additional
unit of input used 10
 The Marginal Product of
Labor
• Produk marjinal tenaga kerja adalah
peningkatan output yang diperoleh dengan
penambahan 1 unit tenaga kerja, dengan tetap
mempertahankan input yang lain konstan:

Marginal Product of L:
MPL= DQ/DL (holding K constant)
= dQ/dL

Average Product of L:
APL= Q/L (holding K constant)
11
 Law of Diminishing
Returns
(Diminishing Marginal
Product)
The law of diminishing returns menyatakan jika input
lain dianggap konstan, maka ketika satu input tertentu
ditambahkan dalam proses produksi, mula-mula
tambahan outputnya akan mengalami peningkatan,
namun saat input tersebut terus ditambahkan hingga
titik tertentu, maka tambahan output akan mengalami
penurunan..
Assumptions. The law of diminishing returns is based
on the following assumptions: (i) the state of
technology is given (ii) labour is homogenous and
(iii) input prices are given.
12
 Short-Run Analysis of Total,
Average, and Marginal Product

• If MP > AP then
AP is rising
• If MP < AP then
AP is falling
• MP = AP when
AP is
maximized
• TP maximized
when MP = 0
13
 Three Stages of Production in
Short Run
AP,MP
Stage I Stage II Stage III

APX

•TPL Increases at MPX X

•TPL Increases at
Diminshing rate. • TPL begins to
increasing rate.
•MPL Begins to decline. decline
•MP Increases at
decreasing rate. •TP reaches maximum •MP becomes
level at the end of negative
•AP is increasing stage II, MP = 0.
and reaches its •APL declines
•AP continues to
maximum at the decline 14
end of stage I
Three Stages of Production
Stages
Labor Total Average Marginal of
Unit Product Product Product Production
(X) (Q or TP) (AP) (MP)
1 24 24 24
2 72 36 48 I
3 138 46 66 Increasing
4 216 54 78 Returns
5 300 60 84
6 384 64 84
7 462 66 78
8 528 66 66 II
9 576 64 48 Diminishing
10 600 60 24 Returns

11 594 54 -6 III
12 552 46 -42 Negative Returns

15
 Application of Law of
Diminishing Returns:
• Mengidentifikasi tahapan operasi yang
rasional dan irasional.
• Ini memberikan jawaban atas
pertanyaan -
– Berapa banyak yang akan
diproduksi?
– Berapa jumlah pekerja yang akan
diterapkan pada input tetap tertentu
sehingga outputnya maksimal? 16
Production in the Long-Run
– Semua input sekarang dianggap variabel
(baik L dan K)
– Bagaimana cara menentukan kombinasi
input yang optimal?

To illustrate this case we will use production

isoquants.
Kurva isokuan adalah garis atau grafik yang
menggambarkan atau menjelaskan barbagai
kombinasi penggunaan dua input variabel faktor
produksi untuk mendapatkan tingkat output yang
sama
17
 Tabel Produksi
Units of KK
Units of
Employed
Employed Output Quantity (Q) Isoquant
8 37 60 83 96 107 117 127 128
7 42 64 78 90 101 110 119 120
6 37 52 64 73 82 90 97 104
5 31 47 58 67 75 82 89 95
4 24 39 52 60 67 73 79 85
3 17 29 41 52 58 64 69 73
2 8 18 29 39 47 52 56 52
1 4 8 14 20 27 24 21 17
1 2 3 4 5 6 7 8
Units of
of KL Employed

18
 Isokuan
Graph of Isoquant

Y
7

0
1 2 3 4 5 6 7 X

19
 Jenis Isokuan
Ada beberapa tingkat substitusi antara
input.
Derajat substitusi yang berbeda:

Sugar Natural
Cane flavoring Capital
syrup

K4
K1 K2 K3
Q

All other Labor

Sugar ingredients
L1 L2 L3 L4

b) Input – Output/ L- c) Kinked/Acitivity

a) Linear Isoquant Shaped Isoquant
(Perfect substitution) (Perfect Analysis Isoquant –
complementarity) 20
(Limited substitutability)
Marginal Rate of Technical
Substitution (MRTS)
• Tingkat ketidaksempurnaan dalam
substitusi diukur dengan laju substitusi
teknis marjinal (MRTS- Slope of
Isoquant):

MRTS = DL/DK

(dalam MRTS ini sebagian L

dikeluarkan dari produksi dan diganti
oleh K untuk mempertahankan tingkat
keluaran yang sama)

21
 Properti Isokuan
• Isoquants have a negative slope.

• Isoquants are convex to the origin.

• Isoquants cannot intersect or be tangent

to each other.

• Upper Isoquants represents higher level of

output 22
 Isoquant Map
• Peta isokuan adalah
Figure : Isoquant Map
sekumpulan isokuan
yang disajikan secara Y

dua dimensi.

Capital Y
IQ4
• Setiap isokuan IQ3

menunjukkan berbagai IQ1

IQ2

kombinasi dari dua input O Labour X X

yang dapat digunakan

untuk menghasilkan
tingkat output tertentu.
23
 Laws of Returns to Scale
• Ini menjelaskan perilaku output dalam
menanggapi perubahan input yang
proporsional dan simultan.
• Ketika perusahaan meningkatkan kedua input,
ada tiga kemungkinan tekniss –
(i) TP mungkin meningkat lebih besar dari
proporsional– Increasing RTS
(ii) TP mungkin meningkat secara proporsional –
constant RTS
(iii) TP mungkin meningkat lebih kecil dari
proporsional – diminishing RTS
24
 Increasing RTS

K
Product Line

3K

3X
2K

2X
K
X

0 L 2L 3L
L
25
 Constant RTS

K
Product Line

3K

3X
2K

2X
K
X

0 L 2L 3L
L
26
 Decreasing RTS

K
Product Line

3K

3X
2K

2X
K
X

0 L 2L 3L
L
27
Elasticity of Factor Substitution

28
Cobb – Douglass Production
function: -
X= b0 Lb1 Kb2
X= Out put
L = Quantity of Labour
K = Quantity of Capital
bo , b1 , b2 Coefficient
b1 - Labour
b2 - Capital

29
 Characteristics of Cobb – Dougles
Production function: -
1. The Marginal Product of Factor:
(a) MP L = dx/dl

X = b0Lb1Kb2
dx/dl = b0 b1 Lb1-1Kb2
= b1 (boLb1 K b2) L-1
= b1 X/L

= b1 (AP L)
APL Average Product of Labour
Similarly
(b) MP K = dx/dk
= b2 b0Lb1Kb2-1
= b2 ( b0 Lb1 Kb2) K-1
= b2 X/K

APk Average Product of Capital

30
2. The Marginal rate of technical substitution

MRTS L.K = MPL

MPK
= dx/dL = b1(X/L)
dx/dk b2(X/K)
MRTS LK = b1 K
b2 L

31
 3. The Elasticity of Substitution

σ= Dd k/L / k/l
dMRTS / MRTS
= dK/L/k/L
b1 dk b1 k
b2 L b2 L
EOS =1
This function is perfectly substitutable
function.
32
 4.Factor intensity: -

In cobb-Douglas function factor intensity is

measured by ratio b1/b2. The higher is the ratio
(b1/b2), the more labour intensive is the
technique. Similarly, the lower the ratio (b1/b2)
the more capital intensive is the technique.
OR

b1/b2 labour intensive

b1/b2 capital intensive

33
 5. Returns to scale:-

In cobb – Dougles production function RTS is

measured by the sum of the coefficients
b1+b2 = V
x 0= f (L,K)
X*= f(kL, KK)
A homogenous function is a function such that if
each of the inputs is multiplied by K i.e ‘K’ can
the completely factored out. ‘K’ also has a
power V which is called the degree of
homogeneity and it measures RTS.
34
X*= Kv f(x0)
X0 = b0 L b1 K b2
X* = b0 (kL) b1 (kK)b2
= Kb1+b2 (bo L b1 K b2)
=Kv f (X0)
(V=b1 + b2)
\ X* = K v f (Xo)
In case when
V=1 we have constant RTS
V>1 we have increasing RTS
V<1 we have decreasing RTS
35
 6.Efficiency of Production

The efficiency in the organization of the factor of

production is measured by the coefficient b0 :-
If two firms have the same K, L, b1, b2 and still
produce different quantities of output, the
difference can be due to superior organization
and entrepreneurship of one of the firms, which
results in different effectiveness.
The more efficient firm will have a larger b0 than
the less efficient one.

b0 More efficient is firm

36
 Constant Elasticity Substitution
(CES) Production Functions
• The CES production function is expressed as

Q = A [ ]
aK - b + (1 - a ) L- b -u / b
Subject to (A > 0, 0 < a < 1, and b > -1)
where L - labour, K = capital, and A, a and
b are the three parameters

1. ‘A’ is the efficiency parameter and shows the scale

effect. It indicates state of technology and
entrepreneurial organizational aspects of production.
Higher Value of A higher output (given same inputs)

37
2. is the capital intensity factor coefficient and (1-
) is the labour intensity of coefficient . The value
of indicates the relative contribution of capital
input and labour input to total output.

3. Value of Elasticity of Substitution ( ) depends

upon the value of substitution parameter ‘β’
æ 1 ö
b = ç1 - ÷
è s ø
4. The parameter v represents degree of returns to
scale.

5. Marginal Products of labour and capital are

always positive if we assume constant return to
scale. 38
Equilibrium of the firm: Choice of optimal
combination of factors of prodn
• Assumptions:
1. The goal of the firm is profit maximization i.e
maximization of difference
∏ - Profit
R- Revenue
C-Cost

2. The price of o/p is given, Px

3. The price of factors are given w is the given wage
rate r is given price capital
39
 Single Decision of the firm
(a) Maximize profit ∏, subject to cost
constraint. In this case total cost & prices
are given and maximization of ∏ is if X is
maximised since c & Px are given constant.
∏ = R-C
= P x X-C
(b) Maximise Profit ∏ for a given level of o/p.
Maximisation of ∏ is achieved in this case if
cost c is minimized , given that X & Px are
given constants.
∏= R-C
∏= PxX - C

40
 We will use isoquant map (1) and
isoquant line (2)
Figure : Isoquant Map (1)
Figure : Isoquant Line (2)

K
K

C/r
A
Capital Y

3x
2x
x1
C/W

O L O B L

The cost line is defined by cost equation

C= (r) (k) + (w) (L)
W wage rate r= price of capital service 41
 Case I
Maximization of output subject to
cost constraint

A
Capital

C x3
K1
x2
X1
0 L1 B
Labour

42
 Condition for Equilibrium

• At point of tendency slope of isocost line

(w/r ) = slope of isoquant. (MPL/MPK)
• The isoquants should be convex to origin

43
 Case II
Minimization of cost for given level
of output

K1 e
X

0 L1 L

44