Day 7 | Micro economics | Production | Chapter 5 | One Shot

Definition of production function and factors related to production. Discussion on the use of technology, technological relationship between input and output, and the concept of entrepreneurship.

Explanation of fixed factors and variable factors. Differentiating factors in short run and long run production.

Definition of product in terms of volume of goods produced by a firm or an industry during a specific period of time. Discussion on different types of products.

Understanding constant proportion in long run and variable proportion in short run. Explanation of total, marginal, and average products.

Explanation of total product, marginal product, and average product. Definitions and examples provided for better understanding.

Illustration of how a change in inputs affects outputs in terms of total, average, and marginal product.

The production function concept explains that all factors remain fixed except one variable factor, such as labor, which leads to changes in production.

Labor is considered a variable factor as it can be easily added or changed to increase production without changing the fixed factors like land.

Adding more labor significantly increases total production, showcasing the efficiency and effect of labor on overall output.

Examining the increase in additional production by adding labor and observing the rate of growth in output.

Observing the marginal changes in production with each additional unit of labor added and how it impacts overall production efficiency.

Comparing the changes in production rates between different phases and factors to understand the increasing or diminishing returns.

Understanding the importance of decision-making in determining which phase of production to focus on based on factors like increasing or decreasing returns.

Exploring the impact of fixed and variable factors, such as labor, on production rates and the concept of increasing and diminishing returns.

Explains the concept of Fix Factor Utilization and its impact on efficiency and production.

Discusses the concept of indivisibility of fix factors and its influence on production.

Explains how the increase in variable factors can lead to improved production utilization and efficiency.

Discusses the synergistic effect of combining fix factors on variable factor production.

Explains the limitations of labor changes and the balance between perfect and imperfect substitutes.

Discusses diminishing returns in production and the optimization of variable and fix factors.

Explains the relationship between Marginal Product (MP) and Average Product (AP) in production.

Explores the concepts of Total Product (TP), Marginal Product (MP), and Diminishing Returns in production.

Illustrates the trend of Average Product (AP) and Marginal Product (MP) in relation to each other.