Theory of production, Microeconomics

Assignment Help:

THEORY OF PRODUCTION:

Production activities related to goods and services require inputs. Typically, the set of inputs includes labour, capital equipments and raw materials. The producing unit usually has to solve the choice problem as a given amount of output can be produced from various combinations of inputs. Firms, therefore, look for production possibilities that are technologically feasible. A production function describes the relation between input and output with a given the technology. More formally, it shows the maximum amount of output that can be produced from any specified set of inputs, given the existing technology. If we assume that there are only two factors of production - labour (L), capital (K) and a single output q, mathematically a production function can be written as, 

q = F(L, K)  


Related Discussions:- Theory of production

Draw the demand curve - axes, 1. The total demand (marginal benefit) curve ...

1. The total demand (marginal benefit) curve for visiting the Great Barrier Reef is as follows: Price = 5000+100*Fish Biomass (tons per square mile) -10*Number of Trips.   a. Do

What is the benefit from the existence of monopolies, Explain how consumers...

Explain how consumers might benefit from the existence of monopolies. While the standard issue of monopolies having higher prices and lower output that competitive markets migh

When is tax to society cause a deadweight loss, When is tax to society caus...

When is tax to society cause a deadweight loss? Applying Consumer and Producer Surplus: The Efficiency Costs of a Tax A tax causes a deadweight loss to society, since les

Difference between accounting profit and economic profit, Difference betwee...

Difference between accounting profit and economic profit: The difference between accounting profit and economic profit is that economists include in total cost of production b

Demand forecasting, What is Demand Forecasting? Explain in brief various me...

What is Demand Forecasting? Explain in brief various methods of forecasting Demand.

1, a) Consider the following flows (in thousand of people) between the vari...

a) Consider the following flows (in thousand of people) between the various labour market states in a particular month: UE = 240 000; UNLF = 180 000; EU = 190 000; NLFU = 220 000

Production, introduction of production

introduction of production

Half-lives, How many half-lives are required for the concentration of react...

How many half-lives are required for the concentration of reactant to decrease to 1.56% of its original value?

How do we evaluate the value of money, How do we evaluate the value of mone...

How do we evaluate the value of money? Supply and demand verifies the value of a currency. If demand is high, the value rises, and vice versa. Factors that affect supply and de

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd