Once market forces decide demand and supply, the firm will need to make decisions about production. Theory of Production relates to the mix of the factors of production and how to utilize these factors to maximum effect. Let us study this further.
- Meaning of Production
- Factors of Production – Land
- Factors of Production – Labour
- Factors of Production – Capital
- Factors of Production – Entrepreneur
- Production Function
- The Law of Diminishing Returns
- Returns to Scale (Production Function)
- Production Optimisation