In the short run production function, the law of variable proportions is applicable. Also read: Total Product Average Product and Marginal... View Article
Production function studies the relationship between physical output of production and the physical inputs or factors of the production process.... View Article
In economics, total cost is calculated as the sum total of all variable and fixed costs. It can be represented mathematically as: Total Cost =... View Article
Total product is referred to as the total volume of output produced by a firm using given inputs. The total product formula is TP = AP ×... View Article
In Stage 1 the firm will not be using the capacity of the production to its optimum capacity or it will be under utilising its capacity so it... View Article
The following are the limitations of the law of diminishing returns: This law, although considered to be useful in production activities,... View Article
The different stages or phases in law of variable proportion are: Stage 1: In this stage the curve of total product or TP increases at an... View Article
Short run period is a term used in economics to describe a period of production in the future in which the value of one input varies while the... View Article
In the second stage of law of variable proportions the total product continues to increase at a diminishing rate till the time it reaches its... View Article
TP stands for the Total product, MP stands for the Marginal Product and AP stands for the average product. Let’s understand these briefly.... View Article
Law of diminishing returns or law of diminishing marginal productivity in economics is a law that states that when one factor of input is... View Article
The marginal product also falls with respect to the total product. Also read: Meaning of Demand and Factors Affecting Demand Law of Variable... View Article
The maximum point of TP is when MP becomes zero. Also read: Meaning of Demand and Factors Affecting Demand Law of Variable Proportion The... View Article
Negative returns to a factor states that when more and more units of variable factor are added along with the fixed factor in production, then... View Article
The optimum combination of inputs that is required to produce output at the least possible cost is called the least cost combination. Also read:... View Article
a) Ledger b) Journal c) Trial Balance d) Bank Reconciliation Statement Answer: b) Journal Journal is that book where all the accounting... View Article
a) Purchase of Plant and Machinery b) Repairs on Plant and Machinery c) Installation of Plant and Machinery d) Erection of Plant and Machinery... View Article
(a) AR curve is steeper than MR curve (b) TR increases (c) MR curve is steeper than AR curve (d) AR and MR Curves coincide in a horizontal... View Article
a) Cost Price b) Market Price c) Net Realisable Value d) At Cost or Net realisable whichever is Less Answer: d) At Cost or Net realisable... View Article
The matching principle states that a business should report the expenses incurred during an accounting period in which the related revenues are... View Article
