a) Production Function- It shows technological relationship between physical inputs and physical outputs.
It can be written as follows:
Q = f (f1, f2, f3 ….fn). Where Q is physical quantity produced and f1, f2, f3 ….fn are the physical quantities of different factors of production used.
b) Market **** – It is defined as a very short time **** in which supply of commodity cannot be changed by changing the unit of factors of production. In this case all the factors of production remain constant.
c) Total Product: - The total amount of commodity (Good) produced by employing given units of variable factors with fixed factors is called Total Product. It can be obtained by two ways:
i) By summing up the marginal physical product derived from various units of variable factor employed.
TPP = MPP1+ MPP2 + MPP3 + MPP4 +……+MPPn
TPP= ΣMPP
ii) By multiplying average physical product by number of units of variable factor employed.
TPP = APP x N
d) Normal Profit - Normal profit is the minimum amount of profit which is essential to keep an entrepreneur in production in the long run.
