What is Returns to Scale? Returns to scale imply the behavior of output when all the factor inputs are changed in the same proportion given…
Producer equilibrium implies a situation in which a producer maximises his/her profits.
Isoquant Curve: A technical relation that shows how inputs are converted into output is depicted by an isoquant curve.
As the proportion of one factor in a combination of factors is increased, after a point, first the marginal and then the average product of that factor will diminish.
The short run refers to a time period in which the supply of the inputs, such as plant and machinery is fixed. Only the variable…
Types of Production Functions: 1. Cobb Douglas, 2. Leontief 3. Constant elasticity substitution (CES) production function.
Production function can be defined as a technological relationship between the physical inputs and physical output of the organisation.
Production Possibility Curve (PPC) is a curve that shows the alternative combinations of two goods and services by using all the available factor resources, efficiently.
In economics, Production is a process of transforming tangible and intangible inputs into goods or services.
Criteria for Good Demand Forecasting are: 1. Accuracy 2. Timeliness 3. Affordability 4. Ease of interpretation