PRESENTED BY : Mourya Sandeep N Department : E.C. ENROLLMENT NO : 130180111027 SUBJECT : Economics and Management SUBMITTED TO : P. D. PATEL.

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Presentation transcript:

PRESENTED BY : Mourya Sandeep N Department : E.C. ENROLLMENT NO : SUBJECT : Economics and Management SUBMITTED TO : P. D. PATEL

Theory of production

Topic # 2 Theory of production; production function, meaning, factors of production (meaning & characteristics of Land, Labor, capital & entrepreneur), Law of variable proportions & law of returns to scale Cost; meaning, short run & long run cost, fixed cost, variable cost, total cost, average cost, marginal cost, opportunity cost. Break even analysis; meaning, explanation, numerical

Production Theory Production theory is the study of production, or the economic process of converting inputs into outputs. Production uses resources to create a good or service that is suitable for use, gift-giving in a gift economy, or exchange in a market economy. This can include manufacturing, storing, shipping, and packaging. production is measured as a “rate of output per period of time”.

Production Theory There are three aspects to production processes: – the quantity of the good or service produced, – the form of the good or service created, – the temporal and spatial distribution of the good or service produced.

Factors of production The inputs or resources used in the production process are called factors of production by economists. possible inputs are usually grouped into four categories.  These factors are: o Land, o Labour, o Capital o entrepreneur

4 Factors of Production In Economics