Describe the various conditions of Total Product, Average Product and Marginal Product in detail. OR
Differentiate between short run and long run production function and describe them in detail.
Answers
Answer:
Answer is given below
Explanation:
A short-run production function refers to that period of time, in which the installation of new plant and machinery to increase the production level is not possible. On the other hand, the Long-run production function is one in which the firm has got sufficient time to instal new machinery or capital equipment, instead of increasing the labour units.
The production function can be described as the operational relationship between the inputs and outputs, in the sense that the maximum amount of finished goods that can be produced with the given factors of production, under a particular state of technical knowledge. There are two kinds of the production function, short run production function and long run production function.