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Production Theory

Overview: In microeconomics, Production is simply the conversion of inputs into outputs. It is an economic process that uses resources to create a commodity that is suitable for exchange. This can include manufacturing, storing, shipping, and packaging. Some economists define production broadly as all economic activity other than consumption. They see every commercial activity other than the final purchase as some form of production.

This is an introductory article on production theory.

Contents

  • Efficiency and cross-efficiency
  • Factors of production
  • Total, average, and marginal product
  • Diminishing returns
  • Diminishing marginal returns
  • Many ways of expressing the production relationship
  • Isoquants
  • The marginal rate of technical substitution

Tags: Production Theory; Factors of production; Total, average, and marginal product; Diminishing returns
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Source: Wikipedia


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