Economics · Class 11 Commerce
Ch 3Production Analysis — Class 11 Economics, concept-first.
Production is the process of creating goods and services by combining various inputs, called factors of production, to satisfy human wants. In economics, production is not limited to the physical manufacture of a tangible good such as cloth or furniture — it equally includes the creation of a service, such as teaching,…
Key concepts
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Law of Variable Proportions
Imagine you're making chai for your family. You have one stove, one kettle, and one burner. You start with one person making tea — that's fine. Now you add a second person to help.
Most relevant Q&A
- A firm's Total Product at different levels of labour is given below (capital held fixed). Compute the Marginal Product and Average Product a…Free
- State the Law of Variable Proportions. Why does the marginal product of the variable factor eventually diminish, even though nothing about t…Preview
- A firm has a fixed amount of capital and adds units of labour one at a time. The Total Product (TP) at each level of labour is given below.…Free
- Why does a rational producer always choose to operate in Stage II of production, and never in Stage I or Stage III?Preview
- The Short-run production is studied through : (a) Law of Demand (b) The Laws of Returns to Scale (c) The Laws of Variable Proportions (d) Is…Preview
In previous exams
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Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of Production and Factors of Production
Production is the process of creating goods and services by combining various inputs, called factors of production, to satisfy human wants.
The Production Function
A production function is a purely technical (non-monetary) statement of the MAXIMUM output a firm can obtain from every possible combination of inputs, given the existing state of technology.
Law of Variable Proportions: Total, Average and Marginal Product
The Law of Variable Proportions describes what happens to output in the SHORT RUN when successive units of a variable factor (say, labour) are added to a fixed factor (say, capital), one unit at a tim…
The Three Stages of Production and the Rational Stage
The behaviour of TP, AP and MP described above divides short-run production into three distinct stages:
Laws of Returns to Scale
While the Law of Variable Proportions applies to the SHORT RUN (one factor fixed, one varied), the Laws of Returns to Scale apply to the LONG RUN, where ALL factors are varied together, in the SAME pr…
Isoquants and the Marginal Rate of Technical Substitution (MRTS)
An isoquant (from "iso" meaning equal and "quant" meaning quantity) is a curve showing all the different combinations of two factors — typically labour () and capital () — that produce the SAME level…
Economies and Diseconomies of Scale
As a firm expands its scale of production in the long run, its average cost per unit is affected by economies of scale (advantages that LOWER average cost as scale grows) and, beyond some point, disec…
Exercises
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- Q6A firm's Total Product at different levels of labour is given below (capital held fixed). Compute the Marginal Product and Average Product a…Free
- Q7A firm's labour, capital and resulting output at three successive scales are given below. Both inputs are doubled at each step. Identify the…Free
- Q8The following combinations of labour and capital lie on a single isoquant, all producing the same fixed level of output. Compute the Margina…Free
- Q9State the Law of Variable Proportions. Why does the marginal product of the variable factor eventually diminish, even though nothing about t…Preview
- Q10Distinguish between internal economies of scale and external economies of scale, giving two examples of each.Preview
- Q11Name the four factors of production and state the reward that each one earns.Preview
- Q12State any three properties of an isoquant.Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 27 questionsHide questions27 questions
- Q1The Short-run production is studied through : (a) Law of Demand (b) The Laws of Returns to Scale (c) The Laws of Variable Proportions (d) Is…Preview
- Q2Modern economists have propounded the Law of : (a) Variable proportions (b) Increasing returns (c) Decreasing returns (d) Constant returnsPreview
- Q3What are the functions of Entrepreneur ?Preview
- Q4How is Cobb - Douglas Production function expressed ?Preview
- Q5The functional relationship between "inputs" and "outputs" is called as : (a) Savings function (b) Consumption function (c) Investment funct…Preview
- Q6The short-run production function is studied through : (a) Iso-quants (b) The Laws of Returns to Scale (c) Law of Demand (d) The Law of Vari…Preview
- Q7State the Production Function.Preview
- Q8What are the functions of entrepreneur ?Preview
- Q9(a) Elucidate the Laws of Returns to Scale with example. OR (b) Examine the problems of Rural Economy.Preview
- Q10Cobb-Douglas Production Function is based on : (a) Decreasing returns to scale (b) Constant returns to scale (c) Increasing returns to scale…Preview
- Q11What are the factors governing elasticity of supply ?Preview
- Q12(a) Explain the properties of iso-quants with the help of a diagram. OR (b) Explain the objectives and characteristics of Special Economic Z…Preview
- Q13The functional relationship between "inputs" and "outputs" is called as ______. (a) Savings function (b) Consumption function (c) Investment…Preview
- Q14Formula for calculating AP is : (a) TP/MP (b) ΔTP/N (c) TP/N (d) ΔTP/ΔNPreview
- Q15Classify the factors of production.Preview
- Q16What are the characteristics of Land ?Preview
- Q17(a) Explain various steps of Deductive and Inductive method in Economics. OR (b) Explain the Law of Variable Proportions with the diagram.Preview
- Q18Which of the following is not a characteristic of land ? (a) Heterogeneous (b) Its limited supply (c) Gift of Nature (d) It is mobilePreview
- Q19What is Iso-cost line ?Preview
- Q20Define Labour.Preview
- Q21What are the characteristics of Labour ?Preview
- Q22(a) Elucidate the Laws of Returns to Scale. Illustrate. OR (b) Illustrate price and output determination under Monopoly.Preview
- Q23Cobb-Douglas production function assumes (a) Increasing returns to scale (b) Diminishing returns to scale (c) Constant returns to scale (d)…Preview
- Q24Product obtained from additional factors of production is termed as (a) Marginal product (b) Total product (c) Average product (d) Annual pr…Preview
- Q25Define Labour.Preview
- Q26What are the characteristics of land?Preview
- Q27(a) Examine the Law of Variable Proportions with the help of a diagram. OR (b) Discuss the Long run cost curves with suitable diagram.Preview
More questions
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- Example 1A firm has a fixed amount of capital and adds units of labour one at a time. The Total Product (TP) at each level of labour is given below.…Free
- Example 2A firm's labour and capital, and the resulting output, are given below. Both inputs are increased in the same proportion each time. Identify…Free
- Example 3The following combinations of labour and capital all produce exactly 100 units of output (an isoquant). Compute the Marginal Rate of Technic…Preview
- Example 4Why does a rational producer always choose to operate in Stage II of production, and never in Stage I or Stage III?Preview
- Example 5Distinguish between the short-run production function and the long-run production function, giving one example of a fixed factor and one exa…Preview