production analysis

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production analysis

  1. 1. PRODUCTION FUNCTION Production is the process of conversion of input into more variable output analysis of demand is may be used in planning to production process Q=f(L d, L, C, M ,T ,t) INPUTS 1.MONEY OUTPUTS PRODUCTIO 1.TANGIBLE 2.MAN N PROCESS OR 3.MATERIAL INTANGIBLE GOODS 4.MACHINER AND SERVICES Y
  2. 2. TYPES OF PRODUCTION FUNCTION Depending on the time element Short-run production functiona) Marginal product(MP)b) Average product(AP)c) Total product(TP) Long-run production function
  3. 3. ISOQUANT isoquant is a curve representing the various combinations of two on puts the produce the same amount of output It is also known as iso-product curve,equal- product curve
  4. 4. TYPES OF ISOQUANTS1. Linear Isoquant2. Input-Output Isoquant3. Kinked Isoquant4. Smooth Convex Isoquant
  5. 5. ISOCOSTS An isocost line represents a combination of inputs which all the cost the same amount The isocost line is combined with the Isoquant line to determine the optimal production point
  6. 6. COBB-DOUGLAS PRODUCTIONFUNCTION b 1-b Q =a[L C ]Where Q=quantity of output L=quantity of labour C=quantity of capital a,b are positive constants
  7. 7. RETURN TO SCALE ANDRETURNS TO FACTORSLaw of returns to scalea) Law of Increasing Returns to Scaleb) Law of Constant Returns to Scalec) Law of Decreasing Returns to ScaleReturns to factora) Total Productivityb) Average Productivityc) Marginal Productivity
  8. 8. 1. Internal Economiesa) Managerial Economiesb) Commercial Economiesc) Financial Economiesd) Technical Economiese) Marketing Economiesf) Risk-bearing Economiesg) Indivisibilities And Automated Machineryh) Economies of larger Dimensioni) Economies Of Research And Development
  9. 9. ECONOMIES OF SCOPEDefinition : It is often used some what differently than the concept of economies of scale . It refers to the reduction in unit cost realized then the firm produces two or more products jointly rather than separately.
  10. 10. INNOVATIONS AND GLOBALCOMPETITIVENESSa) Product Innovationb) Process Innovationc) Product Cycle Modeld) Just-In-Time Production systeme) Competitive Benchmarking
  11. 11. External economiesa) Economies of Concentrationb) Economies of Research And Developmentc) Economies of Welfare
  12. 12. THANK YOU………..

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