Saturday, July 28, 2018

Concept of Production Function

Production:
Transformation of input into output is called production
Eg:conversion of milk into curd is called production here input is milk and output is curd

Production function :
Technological relationship between physical input and physical output is called production function
Eg:the activities which are helping in input to convert in output is called production function because it is happening in physical input and it outcomes also in physical output
Factors of production :
1.Fixed factor
2.Variable factor

Fixed factor:which cannot be changed with the production (capital)
Eg:in a class there are 20 students but the capacity of class is 30 students here the fixed factor is desk which cannot be changed and the production is students which are increasing
          It means even if the production also increases the fixed factor remains same

Variable factor:which can be changed(labour)
     
It Is a factor which changes along with production it means if the production increases the variable factor are also increases
Eg:If I am  teaching in the class with the help of marker writing on the board if I take 2 hours class then  the marker also use 2 hours it means production increases and variable factor also increases

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