This document discusses key concepts in production analysis including the production possibility curve (PPC), inputs and outputs, fixed and variable inputs, and short and long run time periods. It also explains the production function and how total product, marginal product, and average product are determined by the quantity of labor input based on the law of variable proportions. Finally, it covers the different types of returns to scale including increasing, constant, and diminishing returns based on how total output changes with proportional increases in all factor inputs in the long run.
Production function describes the technological relationship between inputs and output in physical terms. Study of production function is directed towards establishing the maximum output which can be achieved with given set of factors of production.
Production function describes the technological relationship between inputs and output in physical terms. Study of production function is directed towards establishing the maximum output which can be achieved with given set of factors of production.
Introduction,Factor of production,Production functions,Types of production functions,Short run,Long run,Iso-quant line,Iso-cost line,Production possibility frontier
The basic function of a firm is to produce one or more goods and /or services and sell them in the market.
Production requires employment of various factors of production, which are substitutes among themselves to certain extent.
Thus, every firm has to decide what combination of various factors of production, also called inputs, to choose to produce a certain fixed or variable quantities of a particular good.
The problem is referred to as “ how to produce?”
Production function- Law of variable proportions - Applications of Law of variable proportions - Law of returns to scale - Constant returns to scale - Increasing to returns scale - Decreasing to returns scale - Economies of scale - Internal economies of scale - External economies of scale - Cost classification
Introduction,Factor of production,Production functions,Types of production functions,Short run,Long run,Iso-quant line,Iso-cost line,Production possibility frontier
The basic function of a firm is to produce one or more goods and /or services and sell them in the market.
Production requires employment of various factors of production, which are substitutes among themselves to certain extent.
Thus, every firm has to decide what combination of various factors of production, also called inputs, to choose to produce a certain fixed or variable quantities of a particular good.
The problem is referred to as “ how to produce?”
Production function- Law of variable proportions - Applications of Law of variable proportions - Law of returns to scale - Constant returns to scale - Increasing to returns scale - Decreasing to returns scale - Economies of scale - Internal economies of scale - External economies of scale - Cost classification
Production Function,Cost Concepts & Cost-Output analysisVenkat. P
Production Function, Cobb-Douglas Production function, Iso-quants and Iso-costs, MRTS, Least Cost Combination of Inputs, Laws of Returns, Internal and External Economies of Scale
Cost concepts, Determinants of cost
cost-output relationship in short run and Long run, Objectives, Assumptions of BEA
Graphical representation, Importance, Limitations of BEA
Isoquants, MRTS, Concept of Total Product, Average & Marginal Product, Short Run and Long Run analysis of production, The Law of Variable proportion, Returns to scale,
Production Cost – Concept of Cost, Classification of Short run cost – Long run cost,
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
2. Key Concepts in Production Analysis
• PPC, Input-Output, Fixed &Variable Inputs , Short run & Long
run.
Production Function and its various determinants.
Law of Production
• Law of Variable Proportions
• Law of return to scale
3. Production Possibility Curve (PPC)
Production Possibility Curve is the curve which shows the combinations
of two goods and services that can be produced with fuller utilization of a
given amount of resources in the most efficient way and with a given
production technology. It is also known as Transformation curve. PPC is
concave to origin. This is because of the increasing opportunity cost i.e. in
accordance with the law of increasing opportunity cost.
In order to understand this, let us take an example.
Production
Possibilities
Consumer Goods
(units)
Capital Goods
(units)
A 50 0
B 48 1
C 44 2
D 35 3
E 0 4
4. • In the above figure, as we move downwards along the PPC from left to right (i.e.
from A to E ), we observe that in order to produce more units of capital goods, the
economy must sacrifice some amount of consumer goods. In other words, it reflects
the opportunity cost of producing one good in terms of another good. For example, a
movement from point B to point C implies that the economy is diverting resources
from the production of consumer goods to the production of capital goods. In order to
produce one additional unit of capital good, the economy is sacrificing four units (i.e.
48 – 44 units) of consumer goods. Thus, the opportunity cost of producing one
additional unit of capital goods is 4 units of consumer goods.
5. Input and Output:
• An input is a good or service that goes into the process of production.
Land, Labour, Capital, Management, Entrepreneur and Technology are
classified as inputs.
• An output is any good or service that comes out of the production process.
Short Run and Long Run:
• Short run refers to a period of time in which supply of certain inputs i.e.,
plant, building and machinery etc. is fixed or inelastic.
• Long run refers to a time period in which the supply of all the inputs is
elastic or variable.
Fixed Inputs & Variable Inputs:
• Fixed inputs remains fixed (constant) up to certain level of output.
• Variable inputs change with the change in output.
6. Production Function
Production function is defined as “the functional relationship between
physical inputs ( i.e., factors of production ) and physical outputs, i.e.,
the quantity of goods produced”.
Production function may be expressed as under:
Q = f ( K,L)
Where ;
Q = Output of commodity per
unit of time.
K = Capital.
L = Labour.
f = Functional Relationship.
7. Production function depends on :
• Quantities of recourses used.
• State of technical knowledge.
• Possible process.
• Size of firms.
• Relative prices of factors of production.
8. The following points may be emphasized:
• Production function represents a purely technical relationship.
• Output is the result of joint use of factors of production.
• Combination of factors depend on the state of technical
knowledge.
Every management has to make choice of the production function
which gives Minimum cost and maximum average profit.
9. Laws of Production
Laws of production are of two types:
• The law of variable proportions.
• Laws of returns to scale.
10. Short Run Production Function: The Law of Variable
Proportions
Statement of the law:
“The law of variable proportions states that when more
and more units of the variable factor are added to a given
quantity of fixed factors, the total product may initially
increase at an increasing rate reach the maximum and
then decline”.
11. Tabular Presentation of Law of Variable Proportions
Units of Labour TP MP AP
I Stage
II Stage
III Stage
1 80 80 80
2 170 90 85
3 270 100 90
4 368 98 92
5 430 62 86
6 480 50 80
7 505 25 72
8 505 0 63
9 495 -10 55
10 470 -25 47
12. Diagrammatical Presentation of Law of Variable Proportions
Assumptions of the
law:
State of Technology
remains the same.
Input prices remain
unchanged,
Variable factors are
homogeneous.
AP
MP
AP
MP
13. A Rational producer will never choose to produce in stage III where
Marginal Productivity of variable factor is negative. It will stop at the
end of the second stage where Marginal Productivity of the variable
factor is Zero. At this point the producer is maximizing the total output
and will thus be making the maximum use of the available variable
factors.
A producer will also not choose to produce in Stage I where he will not
be making full use of the available resources as the average product of
the variable factor continues to increase in this stage.
A producer will like to produce in the second stage. At this stage
Marginal and Average Product of the variable factor falls but the Total
Product of the variable factor is maximum at the end of this stage.
Thus stage II represents the stage of rational producer decision.
Law of Diminishing Returns and Business Decisions
14. Long Run Production Function: The Returns to scale
The long run production function is termed as returns to scale. In the
long run, the output can be increased by increasing all the factors in the
same proportions.
The laws of returns to scale is explained by the help of Isoquant
curves. An Isoquant curve is the locus of points representing various
combination of two inputs, Capital & Labour, yielding the same
output.
15. ISOQUANTS
Isoquant is one way of presenting the production function where two
factors of production are shown.
It represents all possible input combinations of the two factors, which are
capable of producing the same level of output.
IQ
O
Y
X
a
b
c
d
LABOUR
C
A
P
I
T
A
L
ΔK
ΔL
ΔK
ΔL
ΔK
ΔL
17. Iso-Cost Lines
• It shows all the combinations of the two factors ( say labour and Capital)
that the firm can buy with a given set of prices of two factors.
• It plays an important role to determine combinations of factors, the firms
will choose for production ultimately to minimize cost.
O
X
Y
PRICE OF LABOUR
P
R
I
C
E
OF
C
A
P
I
T
A
L
A
B
C
D EE F
18. Producers Equilibrium or the Least Cost Combination of
Factors
• A producer desires to minimise his cost of production for producing a
given level of output with the least cost combination of factors.
E
P
R
S
T
IQ
IQ1
IQ2
LABOUR
C
A
P
I
T
A
L
A
BO X
Y
How producers ultimately arrives the
point of equilibrium ?
•The equilibrium is achieved at the point
Where MRTS LK = PL/PK ie
• The slope of isoquant =Slope of
isocost
•Or , MRTS LY = MPL = PX
MPK PY
Or, MPL = MPK
PX PY
19. There are three technical possibilities;
a) Total output may increase more than proportionately: Increasing returns to scale,
b) Total output may increase at a constant rate: Constant Returns to Scale,
c) Total output may increase less than proportionately: Diminishing returns to
scale.
Causes:
Managerial Diseconomies.
Scarce and Exhaustible resources.
Causes:
Indivisibilities of Factors,
High degree of specialization
Causes:
Factors of production fully utilised.
Technology remains unchanged