Question

explain short run production function with the help of a schedule and a diagram.​

Answer 1

Answer:

The short run production production assumes there is at least one fixed factor input. Production Functions. The production function relates the quantity of factor inputs used by a business to the amount of output that result.

Answer 2

The "functional relationship" between physical inputs & output is called "production function".

Explanation:

• The production function is can be short run or in the long run
• The short-run production function determines the relation between the output and a single variable factor (all other variables are kept fixed). The returns law describes such a production function.The short run is a time period wherein  atleast 1 factor of production is in "fixed supply"
• A business has selected the production scale & is short-run committed to this. It is assumed that the plant & machinery quantity is calculated and the production can be adjusted with variable inputs such as labor,, raw materials & energy
• In the short run, the "law of diminishing returns" states that as "more units of a variable input" are added to "fixed amounts" of land & capital, the change in "total output" will first increase & then decrease.    
• Diminishing returns to labour takes place occurs when marginal product of labor begins to decline. This implies that "total output" would be "increasing" at a "decreasing rate".

Numerical Example of the Law of Diminishing Returns '

Lets assume that there is a fixed supply of capital(=20 units) to which extra units of labour are added to the "production process".

CI         LI    TO       MP      APL

20      1         5         5            0

20      2       16        11             8

20      3       30       14            10

20      4       56        26         14

20      5       85       28          17

20      6       114       29          19

20      7        140      26        20

20      8        160      20         20

20      9         171        11          19

20     10        180        9          18

Where,

CI - Capital Input

LI - labour Input

TO - Total Output

MP  - marginal Product

APL - Avg Product of Labour

1. At first MP is rising – example, the 5th worker adds 28 to output and the 6th worker adds 29, to the output
2. MP from the 7th worker then starts to decline. The 7th worker supplies only 26 units & the 8th worker adds only 20  units. At this point production demonstrates diminishing returns.
3. TO would continue to rise as long as MP is positive
4. AP will increase if MP > AP