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Concept and Types of Production Function

Total, Average & Marginal Product of Labor

If you are a beginner and have just started to study production theories of microeconomics, so then you are on the right place to start from. After studying this article, you will learn the concepts of production, production function, and the concepts of total, average

How does a Multi-product Firm Maximize its Profit?

Edgeworth Box

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

How a Rational Producer Attains his Profit Maximization Goal?

Least-cost Combination of Inputs

In economic literature, we consider profit maximization is the main goal of any business firm or a rational producer. When we talk about the profit maximization objective, we are implicitly referring to the economic efficiency rather than technical efficiency. Technical efficiency does not consider the

Explanation of Law of Returns to Scale

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

Meaning of Isoquant Curve and its General Properties

Isoquants

After reading this article, I hope you will able to understand the meaning of isoquant curve, marginal rate of technical substitution and economic region of production. Also, you will learn the general properties of isoquants in detail and obvious manner. However, before reading this article,

Explanation of Law of Variable Proportion

Law of Variable Proportion Example

This is an article what law of variable proportion is all about. You will learn the core concept of this very famous production theory in economics. Before reading this article, we recommend you to read through the fundamental concept regarding production and production function, which

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