a 3 Date a — i —_ — & Givin the following tab ey — ¢ [Combination LE el on] ee METS 1] ey pe A VT 12 [a06 [iso |= 3S Sie 8 2 | 78 ]ae0 | too’ | 3 Se C 3 5 |welioo} 3 3 Ek 2 0 U_| 3 |300/oo} > 3 pa Nei: 5 | 2 |300 |tool | 3 En . o , rn — eAb which combination the producer — i wn R vill! Thera! a > Ab ‘potnt © because er MTS. = ko 3! et — eK as + Law Returns to Scale er } Low i refurns Fo ccale- ex sine — the relat n ship yretween 1, Re agi ce a output when — al) impo re uch Coe | Th" is lan =p eee rn jon feng Hon: cle — tc law « Ons low out pu chan is Mie ale m put are ner! taytdu int. Ole same prepertion» There are three lau; g waithin 2 4)Tnergasing 6 returns to_scale (TRS)! sts when rae increases ter ; ae qr ee Ae LipbeeTt by accident: - ht TQy= |50 TErz \Oo Th ia 48 ean inpuls are doubled / tripled, ne a mois doubled triple Here, oa ts, The distance between i ccs remains constant when peed , mouts iy lower to higher 1$6Quan 3) Deere anna returns to feats) ‘exists when output Iner ‘bua, granites t than tisk cinecane ine alt in’puts , When: "Bes Ort doubléd / tripled ou Fyut inere Ses = lass “than double |, triph 1Q3+1\S9 |19 3100No. Date x Couses of TRS. CAGE a ice) Gel Ine eh weetey 9 ee She increase inputs b fee fan tiple to gs By double | friple ener The distance betw een successive isoquants Tacreases when roduttr moves from lower to ae iso. quant’ That is : eee yee ba Vs enera und in Q ricu re sector add rata oe ustrusec- tov i develaping cea he: Neat osnr —hussy —Ontendarmenian cigetg! =3 Cb Douglas Production Funchor - ; the most widely used” produc Low: function J Tt bigs detiged bya - tabb ang 0: : ihe qugles Py td en Shri - My actdrnn nd us. Le 2 veh eh is bpresed ig j Q- AX ie . a Where o KY capital , UL? labour. Q&> output’ = and B= posihve param? A? Ufc ency Tee | Technolog g ° + Properties of Cobb- Douglas Function” \) 7 is have ee of degree BEB - - {iin a ides = ae : Hee Pleat aa K and tL by A+, we get: Or. a tage apie > A AM KS OF = ASIP Gast LF ate. gsNo. Date h that pacderea Se eaten mhcHen ah The funel ‘yon | 2) The value of ep giv the nature returns o scal 0 ifs Lec 6) > eae roby to sa Th cx+el=1 5 Constant uns to scale: Tf Cxt p<) Qecrtasing returns fo scale: 3) The ration gives factor intensify Th x 313 lopital intensive Tf Bai. > Labour jotensive - & a u) ‘inal_product_o cfor_can. Te Getta Fin Herel of sgt “product: We have’, pe S00R xc 1 ‘ ~+Margina | \_ product of Labour (tx) TEN ea Grey )CAKX LP] 7 AK BB" sAk™ 8 Ee . A KN LP. 2 “@ Buhites by average produd a of ieee eae ‘Marginal pred of Capital. (MP). A@ : x Ca kX LF) ae OL KX 2 ALP ee no k = ALE KX oo a : 2 Taherts We 3c aTRE = ca fade i 3) 5) ae iticiencg Same A measures ee tea} ad vancem ent or-effi'>= a Date ~ For eg” i for the dake yA: lo ov the industrg Y, A= 20° Then, Industry Y js mort efficient Honk TH can prodtice greater, amount of qa- ods thak ¥ even Lea LP are eq dt: 6\ The marginal rate of technical subshtu- tron of L for K (MRTS uk) can be ap 4 ressed ty berms of a rahorr - S>MRTS ik. dK Q) E i: > Ir 7 K Ps ie * > a 0. K SNNNSNSVNNNEVPEE EEC ddd dd TISJJ Bam : HOn “the basis a cllowing produ chs? unction ind ‘out which one repres~ > CRS; TRS and Des if et OV GO. A Kos you” Here, : , XtB> 0:6t0U>4 SS cRs: BY Q. A KO Here HB O34F0-6 -O9<) > ORS: C) Qs a:b? we Hare rer 2tl. 8-1 > Tes" 2) Given that oS 195 and Ks l00 TO, AR and me- ; > \ Calculate K L Te ag. 12 Me. ATP L AL (oo \ \00 100 100. Yoo 2 yet wry yOo 3 \33-20 : 8:78 \oo YW 200 168No. Date athe fell euaing table shows Total ee run! CTD) Hin shot aoe the Lab\t indicate the situation of Viminighing return? de > Nes, it dots MP is‘ decreasing” EPP Pereeee reece, Ex -* ») Calculate Ar’ee Unit 5: COST AND REVENVE a Cost refers © expenses ad Rroduter lon oe rthase of i by nsportation., edbuhicime tov? eked Cost \s & nection, of _o (@). hein quantity ona output) chang ed cost alsa ciongts "Be. b-Ee [ee sa? 28 ; HAL | Wat eee ée Reh s CTT TT Tee LE! I OL. *Detiuation host short-run Total cost curuts « hor on is the time perfod ns an the producer to ineneasy ts hke* capitol and land’ Tr Xhe short run yoducer increases the amount of va jable qctors \ke labou-? and raw materials to increase gub- puts So, short run otal cost includes LUbVA tol ed cost (TFC) and Tota) cbt CTO + That is): “ee Te. TRCrFVvC: to\_ Fixed Kot (TFC: 3 ia Total hi js pada made ixe Se oP, "y coche v dike- \ang pmachines 2 e emai ns ae + jor al\ \evels =e outpul incurs e2vth at zero leve of ou puk: SR ‘diy Total variable” \S Produter and the increase The te TFC and Tl curves are devived as stallions utt@if TEC ql “Ww ] ce rece wey Granth Bail ig “hag \ | 6)" | \0 \6 2 | 6 \8 pac 3 & | 164 | 20 u Af QO i b W166 z al on variable row oe in output TNC is also zero’ P cost (Tv the explore aga by ae tors se \obay- TVG inertases wait. At 2tro output, out out (9)‘ \s ‘a horizontal: \ strai ht Line 8 acting eke Tye Oxis * TEC -incuss “Nan Sat lero outou: “Ut _rtmatns -con- stant forall tevel’s of out pul “Wl curves Th is einyiyeed * chap td start ng from zero ori Tritiall” TUC {nct-at ages at decreasing ot and” of fer q. q Point it increases ace & TVC ¢erve reflet Sf variable proper jon Seicmn “TEC nee et 2 TC curve: : oe es Tris also inverstd ‘> shaptd+ Te a ot the same rote. as Pie INCrEASeS © vertical gap between TC and TV - @ Thot_is, TC- TELET UC > "Te-TUC = TEC * Derivation of Averagt and Mengival cos curses” “A wa Cost CACCATCY: AC is the rato yok al cost to _gnty pie TF gives Roost ptr _unit JogoTEC TC aes Twe Q g ~ AFL + AVG | Ac. 1c Q OAC ts the sum of average fixed cost CAFC) ond average variable ‘cos (AVC) - * Morqinal Cost (i — E Is The ch ti C wht qoddittonal ane of outpud is prod: one UR Mc. AT Ae - A CTE CH TuC) AG ce ATEC t+ ATVC A A 6 8 ATVC S + ——_ AG ¢ {ACT AFC SAVASSSLSALLL YS