Economics · Class 11 Commerce
Ch 4Theory of Production — Class 11 Economics, concept-first.
Every good or service that reaches a consumer is the result of production — the process of combining resources to create goods and services that satisfy human wants.
Key concepts
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Factors of Production and Production Function
Production combines the four factors of production — land, labour, capital and organisation, rewarded respectively by rent, wages, interest and profit — into output.
Most relevant Q&A
In previous exams
How often this chapter’s concepts have been examined — real appearance data, never estimated.
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Factors of Production and the Production Function
Every good or service that reaches a consumer is the result of production — the process of combining resources to create goods and services that satisfy human wants.
The Law of Variable Proportions
The Law of Variable Proportions (also called the Law of Non-Proportional Returns, and known in its older form as the Law of Diminishing Returns) describes what happens to output in the short run, when…
Returns to Scale
While the Law of Variable Proportions applies in the short run (one factor fixed), Returns to Scale describes what happens to output in the long run, when a firm changes its scale of operation by incr…
Cost Concepts
A firm's short-run cost structure is built from a small set of interlinked cost concepts, all of which a BIEAP Intermediate first-year Economics student is expected to define, distinguish, and compute…
Revenue Concepts
Revenue concepts are the mirror image of cost concepts, describing what a firm earns rather than what it spends, and are essential to determine a firm's profit-maximising output (marginal revenue = ma…
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Describe the internal and external economies.Preview
- Q2Explain the law of variable proportion.Preview
- Q3Write a short note on: Average CostPreview
- Q4Explain the Law of Returns to Scale.Preview
- Q5Write a short note on: Factors of productionPreview
- Q6Describe the internal and external economies.Preview
- Q7Write a short note on: Factors of ProductionPreview
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- Q3Distinguish between Total Product, Average Product and Marginal Product.Free
- Q4Distinguish between the Law of Variable Proportions and Returns to Scale.Free
- Q5Explain any four types of cost with examples.Preview
- Q6Distinguish between Average Revenue and Marginal Revenue under perfect competition and under monopoly.Preview
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- Q9From the following data, calculate TC, AFC, AVC, AC and MC. TFC = ₹60 throughout. TVC at Q = 1, 2, 3, 4, 5 is ₹40, ₹70, ₹90, ₹100, ₹130 resp…Free
- Q10A firm's production function is Q = 2 L^0.5 K^0.5. Examine the returns to scale.Preview
- Q11From the following demand schedule of a monopolist, calculate TR, AR and MR. Price (₹) at Q = 1, 2, 3, 4, 5 is 20, 18, 16, 14, 12 respective…Preview