Interview
Class notes Economic Business Studies- (Poonam Gandhi)-2021-22 Class 11 CBSE, ISBN: 9789389975208
- Course
- Institution
- Book
This is the notes of production function Detailed notes
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Class notes BusineClass notes Business Studies Business Studies - Class 11 by Poonam Gandhi Business Studies - Class 11 by Poonam Gandhi (2020-21)
-
Summary Business Studies - Class 11 by Poonam Gandhi (2020-21) - Business management
-
Class notes Business studies Business Studies- (Poonam Gandhi)-2021-22 Class 11 CBSE, ISBN: 9789389975208
Seller
Follow
b05anjaliahir
Content preview
PRODUCTION FUNCTION ANDRETURNS TO A FACTOR
, Concept of production function: short run and long run
It is the relationship between physical input (i.e., 10 units of capital and 5 units of labour) and
physical output (100 units of the commodity) which is known as Production Function.
Production function, thus, studies the functional relationship between physical inputs and physical
output of a commodity.
"The production function is purely a technical relation which connects factor input and output."
Fixed and variable factors
Fixed factors are those the application of which does not change with the change in volume of
output. Thus, a machine is there even when output is zero.
Variable factors are those the application of which varies with the change in volume of output.
Labour is an example of a variable factor. Thus, use of a variable factor is zero when output is
zero; it increases as output increases.
, Short run production function
Short run is a period of time when production can be increased only by increasing the
application of variable factor(s). Fixed factor, by definition, remains constant.
Qx = f ( L , k )
Qx = Output of commodity- X,
L = Labour, a variable factor,
k = Capital, a fixed factor.
In this type of production function, output can be increased only by increasing the application of
L (the variable factor).
YA
Ky Ke
N
capital(K)*
⑳ ⑧
8 YX
Le L2
Labour (L)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller b05anjaliahir. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.12. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
74735 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
