Cost function shows working relation between output and cost of production. It tells that change in output leads to change in cost of production. Here cost is function of output. Cost function is expressed as C = f(q) where C = Cost of production, q = output, f = function.
Cost function shows working relation between output and cost of production. It tells that change in output leads to change in cost of production.
Here cost is function of output. Cost function is expressed as C = f(q) where C = Cost of production, q = output, f = function.
The law states, ‘If we keep increasing the employment of an input (Like labour, raw material) with other inputs fixed, eventually a point will be reached after which additional output of that input will start falling’.
The law states, ‘If we keep increasing the employment of an input (Like labour, raw material) with other inputs fixed, eventually a point will be reached after which additional output of that input will start falling’.
The law of supply states, “Other things (production quantity, being constant, quantity supplied of a commodity is directly related to the price of commodity”. Example – If the prices rises, supply of the product rise. The price falls, so do the supply.
The law of supply states, “Other things (production quantity, being constant, quantity supplied of a commodity is directly related to the price of commodity”.
Example – If the prices rises, supply of the product rise. The price falls, so do the supply.
Please someone briefly, easily explain the concept of cost Function?
Cost function shows working relation between output and cost of production. It tells that change in output leads to change in cost of production. Here cost is function of output. Cost function is expressed as C = f(q) where C = Cost of production, q = output, f = function.
Cost function shows working relation between output and cost of production. It tells that change in output leads to change in cost of production.
See lessHere cost is function of output. Cost function is expressed as C = f(q) where C = Cost of production, q = output, f = function.
What is law of diminishing marginal product?
The law states, ‘If we keep increasing the employment of an input (Like labour, raw material) with other inputs fixed, eventually a point will be reached after which additional output of that input will start falling’.
The law states, ‘If we keep increasing the employment of an input (Like labour, raw material) with other inputs fixed, eventually a point will be reached after which additional output of that input will start falling’.
See lessWhat do you mean by Law of supply?
The law of supply states, “Other things (production quantity, being constant, quantity supplied of a commodity is directly related to the price of commodity”. Example – If the prices rises, supply of the product rise. The price falls, so do the supply.
The law of supply states, “Other things (production quantity, being constant, quantity supplied of a commodity is directly related to the price of commodity”.
See lessExample – If the prices rises, supply of the product rise. The price falls, so do the supply.