Chapter-5 Production Function

12th English Medium
CONCEPT OF PRODUCTION FUNCTION Production function is an expression of the technological relationship between physical inputs and physical output of a commodity.   PERIOD IN PRODUCTION   VERY SHORT PERIOD: In this period producer does not have sufficient time to make fresh adjustment at the factor of production. SHORT PERIOD: Short run refers to a period in which output can be changed by changing only variable factors. LONG PERIOD: Long run refers to period in which output can be changed by changing all factors of production. Variable factors and Fixed factors Variable factors Variable factors refers to those factors, which can be changed in the short run, for example raw material, casual labour, power fuel etc. Variable factors very directly with the level of output . As output increase, requirement…
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