Business economics production analysis

Business Economics – Production Analysis Sameer Gunjal

Production function: ,[object Object],[object Object],[object Object]

Marginal and Average ,[object Object],[object Object],[object Object],[object Object]

Law of diminishing returns: ,[object Object]

Analyse the given production numbers Marginal Average

Relation – Total, Average and marginal Product ,[object Object]

Salient points… ,[object Object],[object Object]

Short and Long Run ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Returns to scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Economies of scale ,[object Object],[object Object],[object Object],[object Object],[object Object]

Isoquants ,[object Object],[object Object]

Properties of Isoquants ,[object Object],[object Object],[object Object],[object Object],[object Object]

Marginal rate of technical substitution (MRTS) ,[object Object],[object Object],[object Object],[object Object]

MRTS Example ,[object Object],A MRTS A = - (8 – 4) / (4 – 2) = - 2 MRTS B = - (4 – 2) / (8 – 4) = - 0.5 B

Module V: Cost Analysis ,[object Object]

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