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 the same technology. In other…
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 inputs, such as labour and…
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