Grade XI - Microeconomics - Production Function
Grade XI - Microeconomics - Production Function
Grade XI - Microeconomics - Production Function
Production Function
Production Function
Factors of Production
Production Function
Production is
transformation of
inputs into output.
Production Function is
technological
relationship between
input and output of
goods.
Production Function
Production function specifies the maximum
output with the given input or the minimum
amount of input required to attain the desired
level of output.
Product
Total Marginal Average
Product Product Product
Total Product(TP)
AP =
Marginal Product(MP)
MP = =
Law of Variable Proportions
In the above schedule, land is taken as fixed factor and Labour as Variable factor
Law of Variable Proportions
AP =
MP = =
Practicals on TP, AP and MP
1. Calculate Average Product (AP) and Marginal Product (MP)
Variable Factor (Units) 1 2 3 4 5 6
TP (Units) 8 16 24 29 29 25
Sol. AP = ;
MPn = TPn – TPn-1
Sol. AP = ;
MPn = TPn – TPn-1
Sol. AP = ;
TP = ⅀Product produced = ⅀MP
Sol. AP = ;
Sol. AP = ;
Sol. AP = ; TP = ⅀MP
MPn = TPn – TPn-1;
Sol. AP = ; TP = ⅀MP
MPn = TPn – TPn-1;
Sol. AP = ; TP = ⅀MP
MPn = TPn – TPn-1;