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Why we would ever reduce production
Here are many factors which cause decrease in production such as
Increasing costs of inputs
Decrease in DMD.
If the cost of labor have increased
Minimum wage has risen, thus to make an additional unit the fixed costs may have increased.
Consumer preference may have changed.
The firm may have faced dis economies to scale.
Expectation of price rise in future.
More firms are entered in market.
If more taxes levied by govt.
Rate of profit is minimizes
Substitute is available in market.
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∙ 11y ago
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Factors affecting the cost of production?
labour
What is the production function and types of production function?
production function is relation between firm's production and material factors of production
What is the managerial use of production function?
In microeconomics, a production function asserts that the maximum output of a technologically determined production process is a mathematical production of input factors of production.
Fixed proportions technology?
The Fixed Proportion Production Function, also known as a Leontief Production Function implies that fixed factors of production such as land, labor, raw materials are used to produce a fixed quantity of an output and these production factors cannot be substituted for the other factors.
What is a production function concept?
Production function Equation that expresses the relationship between the quantities of productive factors (such as labour and capital) used and the amount of product obtained. It states the amount of product that can be obtained from every combination of factors, assuming that the most efficient available methods of production are used. The production function can thus measure the marginal productivity of a particular factor of production and determine the cheapest combination of productive factors that can be used to produce a given output.
Factors affecting the cost of production?
labour
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What is the production function and types of production function?
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What is the use of production function?
In microeconomics, a production function asserts that the maximum output of a technologically determined production process is a mathematical production of input factors of production.
What is the managerial use of production function?
In microeconomics, a production function asserts that the maximum output of a technologically determined production process is a mathematical production of input factors of production.
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Fixed proportions technology?
The Fixed Proportion Production Function, also known as a Leontief Production Function implies that fixed factors of production such as land, labor, raw materials are used to produce a fixed quantity of an output and these production factors cannot be substituted for the other factors.
What are the factors that impact recruitment in organizations?
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