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54 lines
2.2 KiB
Markdown
54 lines
2.2 KiB
Markdown
+++
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draft = false
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semester = ['S1']
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subjectcode = ['ET DCM1107']
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unit = 'Unit 6'
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notecategory = 'Self'
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title = 'Unit 6'
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toc = true
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url = '/uninotes/s1/et-dcm1107/unit6/self/'
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uniturl = '/uninotes/s1/et-dcm1107/unit6/'
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### ***May 02, 2026***
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## Production Function
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The production function states the functional relationship between the factors of production and the number of products.
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Q = f (L, C, N)
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Here, Q = Quantity of output, L = labour, C = capital, N = land.
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## Time Elements in Production Function
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### A) Short run
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In the short run, only some of the inputs can be varied, but not all. Some factors will remain fixed, and some will be variable.
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### B) Long run
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In this period, not only can variable factors be increased or decreased, but fixed factors
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can also be changed. In other words, all factors of production can be varied.
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### C) Very long run
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This time period is so long that even the state of technology is also changed. Such technological changes are initiated by a long process of continuous research and development and it takes a very long time to apply.
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## Three Aspects of the Production Function
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### A) Total Production (TP)
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Total production refers to the total units of output produced per unit of time by all factor inputs. In the short run, the total output increases because of the alteration in the variable factor inputs, shown mathematically in the equation:
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TP = f (QVF)
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Where, f = functional relationship, QVF = the quantity of variable factors.
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### B) Average Production (AP)
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AP = TP/QVF
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Where, TP = Total Production, QVF = the quantify of variable factors.
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### C) Marginal Production (MP)
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Marginal production refers to the additional units produced with the usage of the last variable factor. In other words, it is the change in total production that takes place due to the addition of a variable factor. All other factors remain constant, and the addition realized in the total product is the marginal product (M.P.). Mathematically, it is shown as:
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MP = n – 1
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Where, MP = Marginal Production, n = total output increased due to the addition of one unit of the variable factor (n - 1 = total no. of factors before the increase of a marginal unit).
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