logging in or signing up production functions ameermtt Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 118 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: July 01, 2013 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript A presentation on: A presentation on Production functionMeaning of production: Meaning of production Its an activity that transforms inputs in to out puts.Production Function: Production FunctionProduction Function: Production Function Inputs Process Output Land Labour Capital Product or service generated – value addedThe production function : The production function The production function can be mathematically written as Q=F(Lb,L,K,T,t….) Lb=land. L=labor. K=capital. T=Technology. t=time.Classification of production function: Classification of production function Short term production function. (K & Lb are constant) Long run production function. (Lb is constant)Factors affecting productivity: Factors affecting productivity Technology Inputs Labor Capital Machinery Land Raw material power Time periodPowerPoint Presentation: States the relationship between inputs and outputs Inputs – the factors of production classified as: Land – all natural resources of the earth – not just ‘terra firma’! Price paid to acquire land = Rent Labour – all physical and mental human effort involved in production Price paid to labour = Wages Capital – buildings, machinery and equipment not used for its own sake but for the contribution it makes to production Price paid for capital = InterestAnalysis of the short run: Analysis of the short run In the short run at least one factor fixed in supply but all other factors capable of being changed Reflects ways in which firms respond to changes in output (demand) Can increase or decrease output using more or less of some factors but some likely to be easier to change than others Increase in total capacity only possible in the long run Law of variable proportionAnalysis of the long run function: Analysis of the long run function The long run is defined as the period of time taken to vary all factors of production By doing this, the firm is able to increase its total capacity – not just short term capacity Associated with a change in the scale of production The period of time varies according to the firm and the industryAlternatives of the long run production: Alternatives of the long run production Constant returns to the scale out put increases in the same proportion as the increase in the input. Increasing return to scale out put increases by a greater proportion than the increase in inputs. Decreasing returns to the scale. output increases in the lesser proportion than the increase in the inputs.Cobb-Doughlas production function: Cobb- Doughlas production function Power function Q= A k L a is positive function Q= A k L b is the positive function a (1 -a) b aProperties of Doughlas production function: Properties of Doughlas production function First , log(Q)=a log(A)+ alog (k)+blog(L) Secondly power function are homogenous Thirdly = E = d Q /Q = d Q . k d k /k d k QPowerPoint Presentation: Fourthly relative share relative share of k in q can be obtained Similarly for ‘b’ L in Q can be obtained Finally cod doughlas production function in general form Q= k L Zero cost=zero production a (1 -a)PowerPoint Presentation: Ready To Defend Thank You You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.