Tag: Production

Concept and Types of Production Function

By TopicBin . Updated . 10 min read . 0 comments

Total, Average & Marginal Product of Labor If you are a beginner and have just started to study production theories of microeconomics, you are in the right place to start from. After studying this article, you will learn the concepts of production, production function, and total, average, and marginal product and their

How does a Multi-product Firm Maximize its Profit?

By TopicBin . Updated . 6 min read . 0 comments

Edgeworth Box In our earlier post, we discussed the profit-maximizing conditions of a single-product firm. But in the real world, the business firm produces more than one product. In this post, we will discuss the profit-maximizing conditions of a multi-product firm. Also, note that the equilibrium of

Profit Maximization Theory of Single-Product Firm

By TopicBin . Updated . 6 min read . 0 comments

Least-cost Combination of Inputs In economic literature, profit maximization is the primary goal of any business firm or rational producer. When we talk about the profit maximization objective, we implicitly refer to economic efficiency rather than technical efficiency. Technical efficiency does not consider the financial aspect of production; it

Law of Returns to Scale: Its Explanation

By TopicBin . Updated . 4 min read . 0 comments

Fallback Image In our earlier posts, we explained the production function and law of variable production. If you have yet to read them, you can find them here - meaning of production function and the law of variable production. Now, here in this post, we are going

Isoquant Curve: Meaning, Assumptions & Properties

By TopicBin . Updated . 8 min read . 0 comments

Isoquants This article tries to explain the meaning of the isoquant curve, its assumptions, and its properties. It will also describe the marginal rate of technical substitution and the economic region of production, possibly in a detailed and obvious manner. In addition, I request you to

Law of Variable Proportion: Its Explanation

By TopicBin . Updated . 6 min read . 0 comments

Law of Variable Proportion Example This article explains the law of variable proportion. You will learn the core concept of this famous production theory in economics. Before reading this article, we recommend you read through the fundamental concepts regarding production and production function, which will facilitate your learning vigor ahead. What