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, so then you are in 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?

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, 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

Law of Returns to Scale: Its Explanation

By TopicBin . Updated . 4 min read . 0 comments

Fallback Image 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

Isoquant Curve: Meaning, Assumptions & Properties

By TopicBin . Updated . 9 min read . 0 comments

Isoquants This article tries to explain the meaning of the isoquant curve, its assumptions, and its properties. Also, it will describe the marginal rate of technical substitution and 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 is an article on what the 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 read through the fundamental concept regarding production and production function,