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The document discusses production functions and the relationship between inputs and outputs of production. It defines the key inputs of production as land, labor, and capital. The production function is represented mathematically as output (Q) being dependent on capital (K), land (L), and labor (La). There are short run and long run production functions. The short run function examines variable proportions of inputs, while the long run function examines returns to scale with all inputs varying. Laws of returns include the law of variable proportions and the law of returns to scale.
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presentation_productionfunction_1500375691_266921.pptx
The document discusses production functions and the relationship between inputs and outputs of production. It defines the key factors of production as land, labor, and capital. The production function is represented mathematically as output (Q) being dependent on capital (K), land (L), and labor (La). In the short run, one factor can be varied while others remain fixed, following the law of variable proportions. In the long run, all factors can be varied, following returns to scale. The stages of returns to scale are increasing, constant, and diminishing.
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The document discusses the production function, which describes the relationship between inputs (factors of production) and outputs in the production of goods or services. The key inputs are land, labor, and capital. Land provides natural resources, labor provides human effort, and capital provides buildings, machinery, and equipment. The production function can be represented mathematically as output (Q) depending on capital (K), land (L), and labor (La). There are short-run and long-run production functions, where in the short-run some inputs can vary and in the long-run all inputs can vary as the firm changes scale. Laws of returns include variable proportions as one input varies, and returns to scale as all inputs vary proportionally
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presentation_productionfunction_1500375691_266921.pptx
The document discusses production functions and the relationship between inputs and outputs of production. It defines the key factors of production as land, labor, and capital. The production function is represented mathematically as output (Q) being dependent on capital (K), land (L), and labor (La). In the short run, one factor can be varied while others remain fixed, following the law of variable proportions. In the long run, all factors can be varied, following returns to scale. The stages of returns to scale are increasing, constant, and diminishing.
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The document discusses the production function, which describes the relationship between inputs (factors of production) and outputs in the production of goods or services. The key inputs are land, labor, and capital. Land provides natural resources, labor provides human effort, and capital provides buildings, machinery, and equipment. The production function can be represented mathematically as output (Q) depending on capital (K), land (L), and labor (La). There are short-run and long-run production functions, where in the short-run some inputs can vary and in the long-run all inputs can vary as the firm changes scale. Laws of returns include variable proportions as one input varies, and returns to scale as all inputs vary proportionally
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2. The law of diminishing marginal returns states that adding more of one variable input, while holding other inputs fixed, will eventually result in smaller increases in output.
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2) It explains the law of variable proportions and returns to scale, including the stages and assumptions of each law. Graphs and tables are provided as examples.
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The production function refers to the technical relationship between quantities of inputs (factors of production) and the quantity of output. It shows the maximum output attainable from different combinations of inputs. Inputs can be fixed or variable depending on the time period.
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Production Function: Meaning, production with one variable input, the law of variable proportion, the laws of returns to scale. Economies of Scale.
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Production Function: Meaning, production with one variable input, the law of variable proportion, the laws of returns to scale. Economies of Scale
Production Function: Meaning, production with one variable input, the law of variable proportion, the laws of returns to scale. Economies of Scale
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Production involves transforming inputs like labor, capital, land and entrepreneurship into outputs of goods and services. In the short run, a period where the amount of capital/machinery cannot be changed, production can only be increased by adjusting variable inputs like labor and raw materials. A production function shows the maximum output obtainable from different input combinations, with short run production limited by the fixed amount of capital while variable inputs like labor can be adjusted to changes in demand.
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The production function explains the relationship between inputs and output in economics. There are four main factors of production: land, labor, capital, and entrepreneurship. These can be fixed or variable factors. The production function formula is Q=f(K,L) where Q is output and K and L represent capital and labor. There are short-run and long-run production functions depending on whether inputs are fixed or variable. The law of variable proportions describes how marginal product decreases as the variable input increases in three stages: increasing, diminishing, and negative returns. Returns to scale refers to the proportional change in output from a proportional change in all inputs and can be increasing, constant, or diminishing.
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pdn function.ppt
- 1. PRODUCTION FUNCTION Dr.S.Gayathri Asst. Professor Dept of M.A.HRM Ethiraj College for Women
- 2. PRODUCTION FUNCTION States the relationship between inputs and outputs Inputs – the factors of production classified as: Land – all natural resources of the earth – not just ‘terra firma’! Price paid to acquire land = Rent Labour – all physical and mental human effort involved in production Price paid to labour = Wages Capital – buildings, machinery and equipment not used for its own sake but for the contribution it makes to production Price paid for capital = Interest
- 3. PRODUCTION FUNCTION Inputs Process Output Land Labour Capital Product or service generated – value added
- 4. PRODUCTION FUNCTION Mathematical representation of the relationship: Q = f (K, L, La) Output (Q) is dependent upon the amount of capital (K), Land (L) and Labour (La) used
- 5. TYPES OF PRODUCTION FUNCTION 1. Short Run Production Function 2. Long Run Production Function
- 6. SHORT RUN PRODUCTION FUNCTION: In the short run all other factors are fixed in supply but at least one factor is capable of being changed to have more output. This aspect of production function is known as Law of variable proportions. Proportional relationship between Production and factors of production is referred to as Law of Returns to a Factor
- 7. LONG RUN PRODUCTION FUNCTION: In the long run it is possible for a firm to change all inputs up and down in accordance with its scale. This is known as Return to scale. When a producer changes all the factors of production in the same proportion, the Proportional relationship between Production and factors of production is referred to as Law of Returns to Scale By doing this, the firm is able to increase its total capacity – not just short term capacity Associated with a change in the scale of production
- 8. Production Function Short run Production Function Returns to a factor One factor Variable Short run Analysis Law of variable proportions Long run Production Function Returns to Scale All factors variable Long run Analysis Law of return to scale
- 9. LAWS OF RETURNS 1. Law of variable proportions. 2. Law of Returns to Scale
- 10. LAW OF VARIABLE PROPORTIONS Law of variable proportions stats that as we increase quantity of only one input keeping other inputs fixed, Total product initially increases at an increasing rate, then at a decreasing rate and finally at a negative rate.
- 11. LAW OF RETURNS TO SCALE Law of returns to scale refers to increase in output as a result of increase in all factors in the same proportion.
- 12. STAGES OF RETURNS TO SCALE 1. Increasing Return to Scale ( Due to many type of internal economies) 1. Constant Return to Scale (After reaching certain level of production internal and external economies are balanced) 1. Diminishing Return to Scale ( Due to emerging diseconomies, Large company creates difficulties of control)