Scribd
Upload
23 views6 pages

It Means Creation On Utility in A Product: Production

1. Production refers to the creation of utility in a product through the use of factors of production like land, labor, capital and entrepreneurship. 2. A production function models the relationship between inputs like land and labor and the amount of output that can be produced. 3. Within a short period of time, increasing one variable factor like labor while holding land fixed can result in increasing, constant, or diminishing returns depending on the law of returns to scale.

Uploaded by

Harishankar Pareek
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
23 views6 pages

It Means Creation On Utility in A Product: Production

1. Production refers to the creation of utility in a product through the use of factors of production like land, labor, capital and entrepreneurship. 2. A production function models the relationship between inputs like land and labor and the amount of output that can be produced. 3. Within a short period of time, increasing one variable factor like labor while holding land fixed can result in increasing, constant, or diminishing returns depending on the law of returns to scale.

Uploaded by

Harishankar Pareek
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Production:

It means creation on utility in a Product

Factors of Production
1. 2. 3. 4. Land Labour Capital Entrepreneur

Production Function
It is the functional Relationship between input and output Symbolically: P(f) = f(L,K,R) Two Factors

Fixed factor (e.g. Land)

Variable factor (e.g. Labour)

Production Function

Short period (Law of Return)

Land Period (Return To Scale)

Low of I.R

Low of C.R

Law of D.R

Inc. RTS

Constant RTS

Diminishing RTS

Law of Variable Proportion (Modern Version)

ISO

Characfection
They They They

Iso Quant
Combination A B C D E Lavum 1 2 3 4 5 Capital 15 10 06 03 01 Output 2000 2000 2000 2000 2000

Stage I II III

T.P

A.P Inc. Dec. Dec.

M.P Inc. but at faster ratc Dec. but all faster rak in End =0 -Ve

You might also like