Question

example of good theory and productive theory?​

Answer 1

Explanation:

Production Theory -- Introduction

Production Theory (factor-product)

Introduction

Diminishing marginal productivity (Short-run v. long-run analysis; Fixed inputs and variable inputs)

Production function (Stages of production)

Profit maximizing quantity of variable input (Marginal value product and marginal input cost)

Demand for the variable input

Defining and determining cost

Profit maximizing level of production (Marginal cost and marginal revenue)

Supply of the output (product)

Loss minimization

Management has been described as decision making. Among the many decisions that managers make are questions about producing a good or service, such as "what product should I produce," "how should I produce this product," and "how much should I produce." This series of web pages focuses on economic concepts that pertain to the third question -- how much should I produce. The discussion assumes that manager has a good sense of what to produce and how it will be produced; that is, the other two questions.

The purpose of this series of web pages is to present a general overview of several economic concepts relating to the broad topic of production theory. The topics include

diminishing marginal productivity

the production function

stages of production

determining the profit maximizing quantity of variable input and the profit maximizing level of production

determining demand for the variable input

defining and determining the cost of producing the product

determining supply of the product, and

minimizing loss if the business is unable to generate a profit

Embedded in these topics are secondary discussions about 1) short-run versus long-run, 2) fixed inputs and variable inputs, and 3) fixed costs and variable costs

Answer 2

Answer:

In economics, production theory explains the principles in which the business has to take decisions on how much of each commodity it sells and how much it produces and also how much of raw material ie., fixed capital and labor it employs and how much it will use.