Thursday, May 28, 2020

Theory of Production- Laws of Returns

Theory of Production- Laws of Returns.

In these laws the economic unit is the individual firm which tries to maximize it's producf-- output through a rational combination of the factors of production at its disposal.

The theory of production is divided into two heads : 1) laws of Returns and 2) Production Function.

Production

It is the result of the co-operative working of the various factors of production- land, labour, capital and entrepreneurship.

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