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PRESENTED BY : Mourya Sandeep N Department : E.C. ENROLLMENT NO : 130180111027 SUBJECT : Economics and Management SUBMITTED TO : P. D. PATEL
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Theory of production
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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
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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”.
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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.
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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
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4 Factors of Production In Economics
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