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Types of Production Function
There are two types of production function
1- Short-run production function: It refers to production in the short-run where there are some fixed factors and some variable factors. In the short-run,production will increase when more units of variable factor are used with fixed factor.
2- Long-run production function: It refers to production in the long-run where all factors are in variable supply. In the long-run, production will increase
when all factors are increased in the production. Get Any Types Previous Years Questions Papers Available Here..
DISTINCTION BETWEEN VARIOUS ASPECTS OF PRODUCTION
Short-run versus Long-run
Short-run: Short-run refers to a period in which some of the factors of production like land and capital are in fixed supply and others like labour are in variable supply.
Long-run: Long-run refers to a period long enough to permit changes in all factors of production.
Fixed Factors of Production versus Variable Best Education Services In India Factors of Production
Fixed Factors of Production: Fixed factors refer to those factors whose supply cannot be changed during short-run. For example, land, machinery, plant, equipment, factory building, etc. These factors remain in fixed supply during short-run.
Variable Factors of Production: Variable factors refer to those factors whose supply can be varied or changed, e.g., raw materials, labour, power, fuel, etc.
These factors are in variable supply in the short-run as well as in the long-run. Get All Types Placement Papers Here.
The difference between fixed factors and variable factors disappears in the long-run as all factors are in variable supply in the long-run.
Level of Production versus Scale of Production
Level of Production: Level of production can be changed by changing the quantity of variable factors like raw materials, labour, fuel, electricity, etc.
Level of production is related to short-run. World Best Online Aptitude Test Available..
Scale of Production: Scale of production is related to capacity of production. Scale of production can be changed by changing the quantity of all variable
factors of production. Scale of production is related to long-run. visit my site for more information.