Returns to a Factor and Returns to Scale 1. A production function shows the relationship between inputs and total output in production. 2. There are three types of returns to scale: increasing returns, constant returns, and diminishing returns. 3. Increasing returns occur when a proportional increase in all inputs leads to a more than proportional increase in total output. Constant returns occur when a proportional increase in all inputs leads to an exact proportional increase in total output. Diminishing returns occur when a proportional increase in all inputs leads to a less than proportional increase in total output.

1. Production Function:
Returns to a Factor
and Returns to Scale
auqpwdn Pln: swDn dw pRqIPl
Aqy pYmwny dy pRqIPl
1
pySkS; bldyv isMG lYkcrwr ieknwimks,
s.s.s.s.huiSAwrpur (s.A.s.ngr)

2. auqpwdn Pln dw ArQ
• BOiqk swDnW Aqy BOiqk auqpwdn dy iv`c pwey
jwx vwly qknIkI sbMD[
Qx=f(L,K)
• (ie`Qy Qx= X vsqU dw BOiqk auqpwdn,
• L=ikrq dIAW BOiqk iekweIAW,
• K=pMUjI dIAW BOiqk iekweIAW ,
• F= Pln)
2

3. auqpwdn dw ArQ
• auqpwdn qoN Bwv AwgqW (kwrkW ) (ikrq,
pMUjI,BUmI)dw vsqUAW iv`c rupWqrx hY[
3

4. auqpwdk (Poducer)
auqpwdk;iksy ivAkqI
jW Prm qoN hY, ijhVw
v`Kry auqpwdn dy
swDnW nMU kMm auqy lgw
ky vsqUAW Aqy syvwvW
dw auqpwdn krdy hn[
4

5. ku`l auqpwd (Total Production)
iksy smyN AvDI iv`c ie`k ArQivvsQw
iv`c auqpwdkW rwhIN auqpwdq vsqUAW
Aqy syvwvW dw ku`l joV hY[
TP=APxL
(ie`Qy TP=ku`l auqpwdn, AP=AOsq
auqpwdn, L= ikrq)
5

6. 6
auqpwdn dy swDnW dIAW
iekweIAW -ikrq
ku`l auqpwdn
1 5
2 10
3 15
4 24
5 30
6 30
7 25
8 20

7. 7
5
10
30
TotalProduction
1 2 3 4 5
Units of Factors of Production
TP
Y
X
O 6 7 8
15
20
25
5
10
15
24
30
30
25
20
TP

8. sImWq auqpwdn
(Marginal Production)
pirvrqnSIl swDnW dI ie`k iekweI dw
ijAwdw jW G`t pRXog krn qy ku`l
auqpwd iv`c jo AMqr AwauNdw hY aus nMU
sImWq auqpwdn ikhw jWdw hY[
MP= TPn-TPn-1
(ie`Qy MP = sImWq auqpwdn
TP= ku`l auqpwdn)
8

9. 9
auqpwdn dy swDnW dIAW
iekweIAW -ikrq
ku`l
auqpwdn
sImWq
auqpwdn
1 5 5
2 9 9-5=4
3 12 12-9=3
4 14 14-12=2
5 15 15-14=1
6 15 15-15=0
7 14 14-15= -1
8 12 12-14= -2

10. 10
1
2
3
5Production
1 2 3 4
MY
X
O
-2 P
Marginal Production
Zero
+ve
Units of Factors of Production
4
-1
5 6 7 8
-VE

11. AOsq auqpwd
(Average Production)
ku`l auqpwdn nMU pirvrqnSIl swDnW dIAW ku`l
iekweIAW nwl Bwg dyx qy AOsq auqpwd
ku`l auqpwdn (TP)
AOsq auqpwd (AP) =-----------------
pirvrqnSIl swDnW dIAW
ku`l iekweIAW (L)
11

12. 12
auqpwdn dy swDnW dIAW
iekweIAW -ikrq
ku`l
auqpwdn
AoOsq
auqpwdn
1 3 3
2 8 4
3 15 5
4 24 6
5 25 5
6 24 4
7 25 3.57
8 20 2.5

13. 13
1
2
3
5
Production
1 2 3 4
Y
XO
AP
Average Production
Units of Factors of Production
4
5 6 7 8
6
3
4
5
6
5
4
3.57
2.5

14. auqpwdn Pln
“auqpwdn Pln iksy Prm dy auqpwdn swDnW
Aqy auqpwdn iv`c sbMD dw nW hY[”
Watson
“ieh auqpwdn Pln ie`k qknIkI sbMD hY
jo ieh d`sdw hY ik ie`k id`qy hoey qknIkI
igAwn dy AwDwr’qy AwgqW(Inputs) dI
inSicq mwqrw rwhIN ikMnI auqpqI(Output) ho
skdI hY[” Lipsy
14

15. auqpwdn Pln
QoVy smyN dw
auqpwdn Pln
lMby smyN dw
auqpwdn Pln
15

16. pirvrqnSIl Anupwq dy inXm rwhIN
ivAwiKAw[pihlI ivAwiKAw PrYNc ArQ-
SwsqrI trgot(Turgot)
auqpwdn dy ie`k swDn nMU siQr r`K ky dUsirAW
dI mwqrw iv`c pirvrqn kIqw jWdw hY[
Anupwq bdl jWdw hY[ audwhrx 5 eykV zmIn
qy 1 mzdUr Anupwq; 5:1
jy 5 eykV qy 2 mzdUr qW Anupwq ; 5:2
swDnW dy Anupwq’c pirvrqn nwl auqpwdn qy
Asr dw ivSlySx kIqw jWdw hY[
16
QoVy smyN dw auqpwdn Pln

17. QoVy smy dw
auqpwdn Pln
Anupwq
qoN v`D dr
nwl vDdw
Anupwqk
dr nwl
vDdw
G`t dr
nwl vDdw
17

18. mwnqwvW
• 1. ie`k swDn pirvrqnSIl Aqy dUjy swry swDn
siQr rihMdy hn[
• 2. siQr Aqy pirvrqnSIl swDnW dy Anupwq iv`c
pirvrqn krnw sMBv hY[
• 3.sMgTn Aqy auqpwdn ivDIAW’c pirvrqn nhIN
• 4. pirvrqnSIl swDnW dIAW swrIAW iekweIAW
ie`k smwn hn[
• 5.inXm QoVy smyN iv`c lwgU [
• 6.inXm swDnW dI mwqrw Aqy auqpwdn dI BOiqk
mwqrw iv`c sbMD d`sdw hY[
18

19. siQr
swDn
BUmI
pirvrqnSIl
swDn ikrqI
TP AP MP ivAwiKAw
10 0 0 - -
10 1 20 20 20 vDdy pRqIPl
dI AvsQw10 2 50 25 30
10 3 90 30 40
10 4 120 30 30
Gtdy pRqIPl
dI AvsQw
10 5 140 28 20
10 6 156 26 16
10 7 161 23 5
10 8 161 20 0
10 9 153 17 -8 irxwqmk
AvsQw
19

20. 20
20
40
60
180
Total
Production
1 2 3 4 5
G TPCY
O
6
F
Average/Marginal
Production
MPC
10
15
2 5
35
O
1 2 3 4 5 6
-8
X
X
7 8 9
7 8 9
120
100
80
140
160
5
20
30
40
APC
vDdw
pRqIPl
G`tdw
pRqIPl irxwqmk
pRqIPl
TP
20
50
90
120
140
156
161
161
153
AP
20
25
30
30
28
26
23
20
17
MP
20
30
40
30
20
16
5
0
-8

21. swDnW dy v`Ddy pRqIPl dy inXm lwgU
hox dy kwrn
• (i) siQr swDn dw pUrn aupXog
• (ii) pirvrqnSIl swDn dI kuSlqw
iv`c vwDw ikrq-vMf sMBv ,kuSlqw iv`c
vwDw , sImWq auqpwdkqw v`D jWdI hY
•
(iii)swDnW iv``c auic`q qwlmyl
21

22. swDnW dy G`tdy pRqIPl dy inXm lwgU
hox dy kwrn
• (i) auqpwdn dy siQr swDn dI Gwt:-
• Anupwq G`t ho jWdw hY Aqy G`tdy- v`Ddy
swDn dw sImWq auqpwd G`t hox lgdw
hY [
• (ii)ApUrn swDn pRqIsQwpnqw
• (iii)swDnW dw G`t qwlmyl
• (iv) v`D vrqoN
22

23. KyqI qy lwgU hox dy kwrn
• (i) pRwikrqk kwrn
• (ii) BUmI dy aupjwaUpn iv`c Gwt
• (iii) ikrq ivBwjn dy G`t mOky
• (iv) G`t dyK-ryK
• (v) mSInW dI G`t vrqoN
• (vi) mOsmI DMdw
• (vii) BUmI dy aupjwaUpn iv`c AMqr
• (viii) BUmI dI sImq pUrqI
23

24. swry swDn pirvrqnSIl ,
koeI vI swDn siQr nhIN [
dIrGkwl iv`c swry swDnW nMU ie`k hI Anupwq
iv`c vDw ky iksy vsqU dy auqpwdn nMU vDwieAw
jw skdw hY[
pRqIPl iv`c jo pirvrqn hovygw, aus nMU
auqpwdn dy pYmwny dw pRqIPl khWgy[
24
lMmy smyN dw auqpwdn Pln

25. pYmwny dw pRqIPl
vDdw
pRqIPl
smwn
pRqIPl
G`tdw
pRqIPl
25

26. pYmwny dy vDdy pRqIPl
• swry swDnW dw pRXog ie`k hI Anupwq iv`c
vDwey jwx qy jd auqpwdn iv`c aus Anupwq
qoN v`D vwDw hovy qW pYmwny dy v`Ddy pRqIPl dI
AvsQw iv`c hovygw [
• audwhrn; jykr auqpwdn dy swDnW iv`c 10%
vwDw krn nwl auqpwdn iv`c 15% jW ies
qoN v`D vwDw huMdw hy qW ies nMU pYmwny dw v`Ddw
pRqIPl ikhw jwvygw[
26

27. ikrqI Aqy
pUMjI dIAW
iekweIAW
TP MP AP
1 10 - 10
2 22 12 11
3 36 14 12
4 52 16 13
5 70 18 14
27

28. 28
4
8
12
18
Marginal
Production
1 2 3 4
Y
X
O
Increasing
Returns
Units of Labour and Capital
14
5
16
R
I

29. pYmwny dy smwn jW siQr pRqIPl
• ijs iv`c auqpwdn iv`c ausy Anupwq iv`c
vwDw huMdw hY ijs Anupwq iv`c auqpwdn dy
swDnW nMU vDwieAw jWdw hY[
• mMn lE ikrq Aqy pUMjI dI mwqrw iv`c 10%
vwDw huMdw hY qW ies dy PlsrUp auqpwdn iv`c
vI 10% dw vwDw hovygw[
29

30. ikrqI Aqy
pUMjI dIAW
iekweIAW
TP MP AP
1 10 - 10
2 20 10 10
3 30 10 10
4 40 10 10
5 50 10 1
30

31. 31
4
8
12
18
Marginal
Production
1 2 3 4
Y
XO
Constant
Returns
Units of Labour and Capital
14
16
10
R
2
C

32. pYmwny dy G`tdy pRqIPl
ijs iv`c auqpwdn iv`c pRqISq pirvrqn swry
AwgqW iv`c kIqy gey pRqISq bdlwv qoN G`t
huMdw hY[
audwhrn; jykr auqpwdn dy swDnW iv`c 15% vwDw
krn nwl auqpwdn iv`c 10% vwDw huMdw hY qW ies
nMU pYmwny dw G`tdw pRqIPl ikhw jwvygw[
32

33. ikrqI Aqy
pUMjI dIAW
iekweIAW
TP MP AP
1 6 - 6
2 9 3 4.5
3 11 2 3.6
4 12 1 3
33

34. 34
1
2
5
Marginal
Production
1 2 3 4
Y
X
O
Diminishing
Returns
Units of Labour and Capital
4
5
3
R
D

35. 35
THANKS
pySks; bldyv isMG sMDU
lYkcrwr ArQ ivigAwn,
s.s.s.s.huiSAwrpur
(s.A.s.ngr)