Theory of Production and Cost

, PRODUCTION

variable factors vs -

Fixed Factors
d d
Those
factors of production
those
factors of production
remain
which
vary with
level
of which same on



output Ex Raw
-
:- material
every
level
of output

Machinery
Ex : -




Long dRun Vs Short Run .




d
Production Period
Planning Period

Conly variable
factors are ( Both variable
factors I

found ) fixed factors are
found)

TO-A-t.LPRO-D-tc.JP

Sum of output variable factor Harbour)
→ produce by
employed
.




→ A.K .Total
A Production


MARGINAL PRO-D-uct.CM#
→
Change
in total production due to
embloyment of
@w additional unit
of variable factor .




Mpn Tin Tin -1 Cn of variable
factory
→ = -
= no .




Ark A
Marginal Production
→ .
=
.