Production function: Distinguish between a short-run and a long-run production. Production involves transformation of inputs into outputs. The output is a function of input. The functional relationship between physical inputs and physical output of a firm is called production function.
How are the average and marginal costs of production are related? Average cost is the total cost per unit of output. It is c cost per unit. Average cost is the sum total of Average variable it and average fixed cost. Average cost depends on the behavior of AVC and AFC.
Costs of production are the most important force governing the supply of a product. A firm chooses a combination of factors which minimizes its cost of production for a given level of output.
How the price of a factor of production is determined by the forces of demand and supply? The marginal productivity theory of factor pricing is Incomplete by itself. It suffers from many defects.
Indian agriculture started declining trend in food production because of the following reasons:
Production means creation of utility having exchange value. Production function implies technical relationship between inputs and output. In the case of short run production function some inputs are kept constant and one input varies. This forms the subject matter of the law of variable proportions.
Before the machine age, every article had to be made by hand. The craftsmen could make only one thing at a time. They could not make exactly similar articles. Moreover this took a long time. The total production was small.
Methane is the simplest hydrocarbon and is the first member of homologous series of alkanes. Some of the sources of methane are:- Methane us the major constituent of gobar gas and sewage gas obtained by decomposition of animal dung, excreta and plant wastes. Methane gas is also produced by bacteria living the gut (digestive track) of cattle and termites.