Ch5 RobUCTIoN hUNCTLY
onverls a Commodq leommodites intz
detfesent commedity
inpub into eutpub
e leahe, nal,land, aboun, apian
7o neake shoe
Pod,
Relshienship bels
eupsess fen c echnalo qca sela lioaelip behoeen.
phyeicas spuls and eutpuk e grod.
Cutput
fonchogat
sopuls
Helationuh
Cdtese = f(Cetton, labcus, Caoihal, Lan
Coloor)
dyfine
MalUm Oub put whica
Cas bepoduced oith
ies eaplal Cuo
labous aipuls . 250 2 7,2)
250chre 10hGof labor
obor 2 m
Man timom opput - Moximuno quallG hp
echnical elabon
econBuecal jalusee
RODUCR
Snput Jink, plastie) laboor, cap(al, dor preruash
J
factor Ippob facfors of Produchon
Caanged FoP an
be cansant
Labouse 223,4s
1 be
fxed taohs kefere h he factoa change.
taputs wshick seaai inckanged
Due a
ohichan
linel
be "ckanged oHafeiod
labes fiucd vasLa lbl
the pioducle nit
1Cine
Long
Lept fxed thens il ae vaiable
hexo at iast one facle iput zemais
Cerslant
pesiod hee
fabtoa ascto ane vaniable
Tokal pxoluck Ca lalal
CTP)
dotal
defined_ hesen lall
a
oulpul psodicod bya fsn letag a
paaliaulas iput(aay fach of
e 5Laboue wued -fr maliag l00onro
P
to to T00
5es pes labos 20 onb
tAr)
husnage Product detned as
bo the eutput pouceo
'CAP 0% APP
A?
Ve
P TP
laboue
adelicua eutput ctlaine by
additiauas onit vauablu fachn
MP MP ATP
AL
2
ROPORTON
factn ivaaiable fae hik
tolo
0 40 ol10
Aing at shecang
at Coastaat af duclau
Rale Role Rale
Variable F.
fxed factoa
Land Laboor
1 Peoduelisa nsill incMan
hale
2 illially
25
35Ting 3
40Jo
35 Ao1
tAt oF ARIABtE tROPORTON
TE
(0 TP A at 1ing sale MPA
jhclecsng aten
25 15 |PasE
I
35 PAASE D MP
5
TPu consant MP O
C-5)> TP MP c -ve
MP &
Negatie utan
Thie law ilali tkat more and Rrse
Unla la vasuable
vasuabte dacha
Teaney Jachoa then, inttially
and then Tr tneeasee
Aale
heseoig
deercasluq ale and
and fnatly TP alant 4alliug
• hs law slalas hat
Jhat as more and ono bil
vaeuable factoa s aod with a fielfchs
MP
Team
Vehen, inFTially MP scioe ad then 'MP
emain posilue aud faally MP becomes
hgaliue
TP Corne
TP
ing TPJing TP-e
Toiot ol aeator
nals beginnag
phase I
MP Cusve
Cusne
TP
Conshaht
APTP
Max 0hen MPaise,TP inao1e
an Lnercang nala
T? ken 4P fllo but semaine
al
parlhve, TP inceasch
deceauag ale
maximnum
ARAEE
TOR
PROPOE
PH- 2 PH3
Ve TP elaul fallig
5) Both p e IP can be
caloulatd or Re hel
of each fhes.
MP
mp ATP
A VE
, TP= SMP
kxplau Low of VP
[Link]
•Dagaam wte enplaaolioa tla duageam
phaaer.
AasuMPTIONS OF awOe VaRRIAB LE PROPORTION
he law o Vasuable mporlant
Concept n econmics thal 'enplins heco Gulut
inpu Ceg Laboun) shile keep'ag
Cey land) lonetan
Dho9 Ron onloel ao ie only eleant
the ehotseen pou'od oliiag lic
Conthued
RODUCTIONN UNCTION
kelationak)beloeen
phye'ea oalpul
Qukput of Qood a he fmchron of dapus
Bhoet Ron buoduolon hchon
do a loknlcaDclaliouthis belween
iapul aad phyeical oulput
utput
physioal
CorslanE
facha
tilualfo ken ouput clanqed
by laotor an
otenaehs coton
Prapor
Long Run
Run produchon fnoll o
• a Lechnical e beteeh
bhysicas inbut aud playeical output sken
al facb Vauable
slualfon bohen 9utput ia changed
by chaglng in al fachsee of poducho
dssenotiou to louo o Voablo Proporhok Cantinuo .
a6wrces Clke machha
ticed or rau
malesalu )can be changd.
ofved acfors: t appliesto situaRon
nesy ase tixed meanlag
Canhet be
Vaulable capb e Looku at skat
happens ushen here io change tle
antunt of vaiablo hput likelabsus)
while keaplug oela inpuls conlank
sdhen
Paodsloa ocue hi Concépk aily
applieeo he bxoduclon sechy Vushee
g90de aup seces asee mede
sece hoo ckanging
vasiasle aapuls Clabol) ateols he oubbuall
Cput
Keepig adaig
makt
Jack a macklnee.
Conlant farkoology: he laus aumer lat Ke
echnelsqy ed pxpduakan doesik changs
dusulaghe pesiod beag ane
Labaus) ae aeUboed cgualiy
feclieZpoduchue
Reac ons or phaee
AP
Labown TP APTP/.e)
(o
25 (2-5
3 85
40
45
Tovese UCe
Can nere be
AP
Relalisuaki bet mp Rer AP
klher MP AP, AP seisee
klhen MP<AP AP falla
klhen MP= AP, AP e
Botk be caluloled 7P
Kroug
AP ta KNU
MP A TP AP - TP
VE