MBAE-103: Managerial Economics – Unit 7

MBAE-103: Managerial Economics – Unit 7

Objectives: define the production; outline the contents of theory of production; explain the law of variable proportions; and explain the law of diminishing marginal returns.

Materials:
The relevant material is available here.

Questions:

1. Define production. What is the theory of production?
2. Distinguish between primary and intermediate inputs.
3. Explain the relevance of theory of production in various fields.
4. Explain the concept of production function.
5. Explain the law of diminishing marginal returns. Also state its assumptions.