Theory Of Production and Cost

CA Foundation Economics Chapter 3 MCQ Questions Theory Of Production and Cost MULTIPLE CHOICE QUESTIONS Theory of Production 1. The term production in economics means- (a) creation of a physical product only (b) rendering of a service only (c) creation of economic utilities (d) none of the above 2. Which of the following is considered production in … [Read more...] about CA Foundation Economics Chapter 3 MCQ Questions Theory Of Production and Cost

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