Partial input elasticity of output, Microeconomics

Partial Input Elasticity of Output: 

This is a short-run concept which deals with the variability of only one factor keeping the others constant. There are three kinds of returns: 

i) Increasing returns: when the AP of a factor rises and MP > AP 

ii) Constant returns: when AP is constant and MP = AP 

iii) Diminishing returns: when AP is falling MP < AP 

The concept of returns to a factor can also be expressed in terms of the "partial input elasticity of output".   

Partial input elasticity of output is also called elasticity of output with respect to a factor. It is the percentage change in output quantity for one per cent change in the quantity of a factor when all other factors remain constant.  

Elasticity of q with respect to L is given by,  

1629_Partial Input Elasticity of Output.png

let us now related this to return to scale

771_Partial Input Elasticity of Output1.png

Besides the above mentioned three returns, there can be another type known as the 'non-proportional returns to a variable factor'. Under it, initially, there is increasing returns to a factor up to a certain level beyond which there is diminishing returns.  

Posted Date: 10/26/2012 6:17:37 AM | Location : United States







Related Discussions:- Partial input elasticity of output, Assignment Help, Ask Question on Partial input elasticity of output, Get Answer, Expert's Help, Partial input elasticity of output Discussions

Write discussion on Partial input elasticity of output
Your posts are moderated
Related Questions
•Create a demand schedule and a supply schedule for your product.. •Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to determine

define statistics in plural and singular sense

price falls and demand is elstic

the demand and supply functions for goods are given by demand:Pd=50-3Qds and supply:Ps=14=1.5Qs. where p is the price of a pair of jeans, Q is the number of pairs of jeans a) calc

Diffrence between price and Income elasticity of demand: Own price elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to a change in

illustrate and discuss the implications of various market structures (competitive and non-competitive) for price determination

Answer the following question Focus on Real Estate Development Normal 0 false false false EN-IN X-NONE X-NONE


Severe drought hit the coffee industry hard this year; as a result, more people are now switching to tea. The first table below shows the original supply and demand quantities in t

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity