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Cost Curves

Law of Variable Proportions

The law of variable proportions was propounded by economists like Joan Robinson, Alfred Marshall, P.A. Samuelson, etc. This law is also known as the law of diminishing returns. This law is also kno...

Relationship between Average Product(AP) and Marginal Product(MP)

Average product is per unit product of the variable factor. In other words, average product is obtained by dividing total product by the total units of variable factor used. Thus,AP= TP/LWhere,AP= ...

Marginal Poduct(MP)

Marginal Product is the change in the total product due to change in the variable facto. In other words, marginal product is the addition to the total product by the employment of an additional uni...

Average Product (AP)

Average product is per unit product of the variable factor. In other words, average product is obtained by dividing total product by the total units of variable factor used. Thus,AP= TP/LWhere,AP= ...

Total Product (TP)

The total amount of goods and services produced in a given period with the given set of inputs is known as total product. Total product is the starting point for the analysis of short-run productio...

Concept of Production Function

Production:Production is the process of creating utility in goods and services or process of transforming inputs into output. Concept of Production Function:In simple words, production function ref...

Law of Return to Scale

In the long run all factors of production are variable. No factor is fixed. Accordingly, the scale of production can be changed by changing the quantity of all factors of production. The law of ret...

Class Twelve

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  3 Questions • 20 Notes

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