• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • NCERT Solutions
    • NCERT Books
  • Class 10
  • Class 9
  • Class 8
  • Class 7
  • Class 6
  • Class 11
  • Class 12
  • MCQ Questions
    • CBSE MCQ

Learn Insta

RD Sharma Solutions , RS Aggarwal Solutions and NCERT Solutions

  • Extra Questions
  • CBSE Notes
  • RD Sharma Solutions
    • RD Sharma Class 12 Solutions
    • RD Sharma Class 11 Solutions
    • RD Sharma Class 10 Solutions
    • RD Sharma Class 9 Solutions
    • RD Sharma Class 8 Solutions
  • RS Aggarwal Solutions
    • RS Aggarwal Solutions Class 10
    • RS Aggarwal Solutions Class 9
    • RS Aggarwal Solutions Class 8
    • RS Aggarwal Solutions Class 7
    • RS Aggarwal Solutions Class 6
  • ML Aggarwal Solutions
    • ML Aggarwal Class 10 Solutions
    • ML Aggarwal Class 9 Solutions
    • ML Aggarwal Class 8 Solutions
    • ML Aggarwal Class 7 Solutions
    • ML Aggarwal Class 6 Solutions
  • English Grammar
    • Words with Letters
    • English Summaries
    • Unseen Passages

CA Foundation Business Economics Study Material – Production Function

April 25, 2019 by Prasanna

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost – Production Function

Production Function

  • Output is a function of inputs i.e. factor services such as land, labour and capital which are used in production. In other words, production is a transformation of PHYSICAL INPUTS into PHYSICAL OUTPUT.
  • The functional relationship between physical inputs and physical output, per unit of time under a given state of technology is called production function.
  • It can also be expressed in the form of a mathematical equation in which output is the dependent variable and inputs are the independent variables.
    Q = f (a, b, c ………… n)
    Where –
    Q denotes quantity of output of a commodity per unit of time
    f stands for function of i.e. depends on a, b, c,… n denotes quantity of various inputs.

Assumptions of Production Function:
The production function is based on the following assumptions:

  1. It is specified with reference to a specified period of time.
  2. It is assumed that the state of technology remains the same, during the period of time.
  3. It is assumed that the firm uses best and most efficient technique available in production.
  4. It is assumed that the factors of production are divisible into viable units.

The production function can be explained under two heads:
1. The short run production function in which input – output relations are analysed where –

  • One input is variable, all other inputs are fixed, (described as the Law of Variable Proportions) OR
  • Two inputs are variable, all other factors are fixed (explained with the help of isoquants)

2. The long run production function in which input- output relations are analysed where all the inputs are variable (described as the Law of Returns to Scale).

Cobb-Douglas Production Function
Q = f (L, K).
Where –
Q = Output; L = Labour; K = Capital

Paul H. Douglas and C.W. Cobb of the U.S.A. studied the production function of the American manufacturing industries. This production function applies to the whole of manufacturing in U.S.A. rather than to an individual firm. In this case, output is manufacturing production and inputs used are labour and capital.

The conclusion of study is that labour contributed 3 /4th and capital about 1 /4th in the manufacturing production.

Filed Under: CA Foundation Tagged With: Business Economics, CA Foundation Study Material, CA-Foundation, Theory Of Production and Cost

Primary Sidebar

  • Maths NCERT Solutions
  • Science NCERT Solutions
  • Social Science NCERT Solutions
  • English NCERT Solutions
  • Hindi NCERT Solutions
  • Physics NCERT Solutions
  • Chemistry NCERT Solutions
  • Biology NCERT Solutions
RS Aggarwal Solutions RD Sharma Solutions
RS Aggarwal Class 10 RD Sharma Class 10
RS Aggarwal Class 9 RD Sharma Class 9
RS Aggarwal Class 8 RD Sharma Class 8
RS Aggarwal Class 7 RD Sharma Class 11
RS Aggarwal Class 6 RD Sharma Class 12

Recent Posts

  • English Grammar for Class 6, 7, 8, 9, 10, 11 and 12
  • Unscramble Words With Letters | Make Words with These Letters
  • Fractions and Decimals Class 7 Notes Maths Chapter 2
  • MCQ Questions for Class 7 Maths Chapter 2 Fractions and Decimals with Answers
  • MCQ Questions for Class 6 Maths Chapter 8 Decimals with Answers
  • MCQ Questions for Class 6 Maths Chapter 1 Knowing Our Numbers with Answers
  • RD Sharma Class 10 Solutions Chapter 12 Heights and Distances Ex 12.1
  • MCQ Questions for Class 10 Science Chapter 10 Light Reflection and Refraction with Answers
  • NCERT Solutions for Class 12 Physics Chapter 1 Electric Charges and Fields
  • MCQ Questions for Class 6 Maths Chapter 3 Playing with Numbers with Answers
DMCA.com Protection Status

Footer

CBSE Library
NCERT Library
NCERT Solutions for Class 12
NCERT Solutions for Class 11
NCERT Solutions for Class 10
NCERT Solutions for Class 9
NCERT Solutions for Class 8
NCERT Solutions for Class 7
NCERT Solutions for Class 6
ML Aggarwal Class 10 ICSE Solutions
Concise Mathematics Class 10 ICSE Solutions
CBSE Sample Papers
cbse
ncert
English Summaries
English Grammar
Biology Topics
Microbiology Topics
Chemistry Topics
Like us on Facebook Follow us on Twitter
Watch Youtube Videos Follow us on Google Plus
Follow us on Pinterest Follow us on Tumblr
Percentage Calculator

Copyright © 2022 Learn Insta