CA Foundation

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost - Internal and External Economies Internal Economies and Diseconomies Internal economies are those benefits which accrue to a firm when it expands the scale of production. Internal economies are the result of the firm’s own efforts independent of the actions of other firms. These … [Read more...] about CA Foundation Business Economics Study Material – Internal and External Economies

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost - Production Optimisation Production Optimisation Isoquants: An iso-product curve or isoquant is a curve, which represents the various combinations of two variable inputs that give the same level of output. As all combinations on the iso-product curve give the same level of output, the … [Read more...] about CA Foundation Business Economics Study Material – Production Optimisation

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost - Law of Returns to Scale Law of Returns to Scale The Law of Returns to Scale examines the production function i.e. the input - output relation in long run where increase in output can be achieved by varying the units of ALL FACTORS IN THE SAME PROPORTION. Thus, in long run all … [Read more...] about CA Foundation Business Economics Study Material – Law of Returns to Scale

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost - Law of Variable Proportions Law of Variable Proportions The Law of Variable Proportions examines the production function i.e. the input-output relation in short run where one factor is variable and other factors of production are fixed. In other words, it examines production … [Read more...] about CA Foundation Business Economics Study Material – Law of Variable Proportions

CA Foundation Business Economics Study Material Chapter 3 Theory of Production and Cost - Meaning of Production Meaning of Production Production is one of the important economic activity that takes place in any economy apart from consumption and investments. An individual firm is the micro-economic unit which undertake the production of goods and services. A firm’s … [Read more...] about CA Foundation Business Economics Study Material – Meaning of Production