Jun 22, 2022
Also, watch a related video on The Macroeconomics Parameters by Vivek Singh Sir, our Economy faculty, and upgrade your UPSC Mains 2022 preparation:
Total Product (TP): It is a relationship between the variable input and output. Total product is the output received at a particular level of the Variable Input, keeping all other factors constant.
Curve (TP, AP and MP)
Beyond a certain point, the production process becomes too crowded with the variable input and further effectiveness can only be attained by enhancing the fixed input. However, this is a Short Run concept as in the Long Run all the factors are Variable.
Union Budget 2023-24 Analysis | Union Budget Key Highlights for UPSC
Economic Survey 2023 | Top 20 Key Highlights
Important links for UPSC Mains preparation:
|Open-Economy Macroeconomics- NCERT Notes UPSC
|Theory of Consumer Behaviour - NCERT Notes UPSC
|Mineral and Energy Resources of India- NCERT Notes UPSC
|Non-Competitive Markets- NCERT Notes UPSC
|Natural Vegetation in India- NCERT Notes UPSC
|Basic Concepts of International Trade- NCERT Notes UPSC
|Human Geography: Nature and Scope- NCERT Notes UPSC
Globalisation and the Indian Economy- NCERT Notes UPSC
Cost is the monetary value of all the expenditures for raw materials, equipment, labours, etc. required to produce goods and services. For every level of output, the firm chooses the least cost input combination in order to achieve price competitiveness and to maximise profit.
Thus, the cost function describes the least cost of producing each level of output given prices of factors of production and technology.
Also Read : Govt Spending on Healthcare FY-2023-24 : UPSC Key Points
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