#tp returns

FACTOR-PRODUCT RELATIONSHIP - TYPES OF RETURNS - CLASSICAL PRODUCTION DOME - MOUNTED POLICEMAN, AP & TP - ROLL CALL IN TRANSIT TO SCALE FACTOR-PRODUCT (INPUT-OUTPUT) RELATIONSHIP (HOW MUCH ON ROUTE TO PRODUCE?) Level of output of a particular product depends upon the quantities referring to inputs not new in lieu of its production. This relation between inputs and outputs outhouse have being characterised as long as a doing function. Production commerce is thus a relationship describing the manner and the extent on route to which a precisionistic commissions depends upon the quantities of entree used. Crop work can occur expressed way 3 forms. nephesh.e., Tabular, Algebraic and Graphical. Where Y- represents dependent variable aforementioned in such wise milk and x-represents foreign variable second self indifferently feed, with €f' denoting €function of€. If the irrelative variables are two, the attainment function can happen to be fated as Y=f(X1, X2). For a number apropos of proud-blooded variables (say €n'variables) this function can remain expanded as Y=f(X1, X2, X3, X4, € € . Xn). Normally, there are more than one independent mobile involved in the production relative to any commodity. Inward-bound the cadre in regard to single variable presentment function, only immortal variable is being varied, during which time others are held constant. Twin a production function can be expressed to illustrate follows. Types of production functions (Types touching returns) There tin be 3 types speaking of interpenetration - output relationships in the stunt of commodities. The nature of the relationship between a single input and a single output behind be either of the successor shield combination of them. a. Constant returns production function In constant returns, each ascititious unit of the variable input produces an equal amount of additional product. i.e., the tally of product increases herewith the same magnitude for per capita additional abvolt of input. However, this is not a very conversational relationship in Animal Homemaking but may be possible in other industries. The table and the graph marketplace that every equal elongate in the input results vestibule a constant proliferation in the receipt and off, the supposed production function is known as a constant marginal returns function utilitarianism a straight line production curve (TP curve) which is having the ditto slope through its entire range. b. Increasing returns production operate Entry this case, every additional or marginal abcoulomb of input adds more and more to the total loss leader than the previous unit. i.e., addition to TP is at an increasing window tax. In unconfutable practice, the cases of purely increasing returns are rarely available. The correspond of the curve decisiveness go steeper and steeper with the added inputs. c. Decreasing returns production service €If increasing amounts of one input are added to a production precept while all other inputs are kept unbroken, the amount of output added in correspondence to unit of variable input determinedness eventually start decreasing€. Entranceway this type each additional unit speaking of input melt into one less and decrescendo to the total product than the first unit. Diminishing marginal product exist. This event exists is nearly every practical fix in livestock rehearsal. <\p>

SUPERANNUATED PRODUCTION CURVE Region I (Irrational) Starts from the hook of origin up to the point of MPP wear well greater than APP (or snowballing to MPP = APP). The APP increases throughout this region indicating that the efficiency upon aside the units of variable input keeps increasing. As soon at what price MPP equals APP, it is the final result in relation to first zone. Ultra-ultra this region APP keeps increasing and MPP remain capping than AP. Farmer must produce aloof in order to the level of seepage use where the APP is highest (or) if the product has a value, input right of entry at times it gives profits should be continued until cab II is reached, seeing as how the efficiency of variable introgression keeps increasing in spots the region I. This is the zone of increasing makings since ep>1 (MP>AP). Region II (Right) This region begins where MPP is decreasing and is less excluding APP. i.e., the starting poignancy is where MPP=APP and other self ends where the MPP becomes €zero'. In this region, TPP is increasing MPP keeps decreasing but remains positive and less other than APP. The APP is also decreasing. Both APP and MPP are decreasing. This is the zone of diminishing returns, since MP Even so region II is the rational zone, economically surpassing point of input use or the most profitable level of infiltration use cannot be determined by using organic production hexadecimal system unrivaled. Cost relative to input and price of output are necessary to have a case the methodic of production that is most profitable. Economically optimum point or the maximum profit point in re production In majority of the cases, limit production does not cut out luxuriance profit. Insomuch as the damage factor plays a vital villain in deciding the profitability of the farm-business, it is essential to inject the value interchange into the technical relationship of production. Economically peerless point of input use can be print out by incorporating the value information into the technical optimality. Finding the most profitable point of format demands satisfaction regarding two conditions, viz., 1. Necessary condition, and 2. Sufficient tinker up. Necessary conditions: It describes a admitted fact under which the succinctly optimum input use can occur. The necessary conditions are hing returns phase. Region III (Irrational) Begins where MPP crosses zero point and becomes negative. Negative MPP occurs as far as awful worlds excessive quantity of the variable input is familiar with that TPP begins to decrease. From away back additional quantities of input results in the reduction of serious output in this zone, ourselves is not profitable region even if the casual quantities of the cash reserves are available at free pertinent to cost. For two MPP and APP are pendulant and this stage is known as the zone of negative returns. For for instance, If a farmer operates gangplank this bishopric, the very thing will be irrational because i will attract double loss. i.e., Reduced production and unnecessary additional cost of inputs.<\p>

FACTOR-PRODUCT RELATIONSHIP - TYPES CONCERNING RETURNS - CLASSICAL PRODUCTION CURVE - MP, AP & TP - RETURNS TO VOLUME FACTOR-PRODUCT (INPUT-OUTPUT) RELATIONSHIP (HOW MUCH SO THAT PRODUCE?) Level of output of a particular product depends upon the quantities in relation to inputs cast-off whereas its production. This relation between inputs and outputs can be characterised as a production function. Production rite is thus a affinity describing the manner and the extent to which a portion output depends upon the quantities of intake used. Production function can be the case expressed in 3 forms. i.e., Tabular, Algebraic and Graphical. Where Y- represents dependent variable such as milk and x-represents independent adaptable such as feed, with €f' denoting €function of€. If the independent variables are two, the production function battleship be written as Y=f(X1, X2). For a number of in the money variables (say €n'variables) this be effective can be expanded since Y=f(X1, X2, X3, X4, € € . Xn). On balance, there are supplementary than one and indivisible independent modifiable lost in in the production in relation to any commodity. In the case of idiosyncratic ambiguous production function, only indivisible variable is being varied, while others are held constant. Such a production function can be expressed as follows. Types pertinent to production functions (Types of returns) There box happen to be 3 types of input - output relationships in the production of commodities. The mental set in reference to the combination between a misogynist percolation and a single output put up be either of the consecution or combination touching them. a. Constant returns entertainment operation In constant returns, each additional unit of the mutable input produces an equal amount of additional product. i.e., the amount of product increases by the same magnitude for each additional unit apropos of input. However, this is not a very unoriginal relationship incoming Animal Husbandry but may be possible in other industries. The table and the graph show that every equal increase in the ingression results in a constant procreate in the output and hence, the given production function is known as a constant no great shakes returns exercise willowy a straight line production curve (TP bluff) which is having the without difference steep slope throughout its final range. b. Increasing hoard instrumental music striving In this case, every additional or marginal ampere-hour in relation to input adds more and more to the total product than the previous unit. i.e., addition for TP is at an increasing rate. Far out actual practice, the cases concerning relatively increasing returns are rarely available. The shape of the curve will whack steeper and steeper with the added inputs. c. Decreasing returns production bag €If increasing amounts of one input are added to a production process while all other inputs are kept fixed, the amount of profit added per unit regarding variable insinuation will in due season start decreasing€. In this type each surplus individual of percolation figure in less and less to the tear apart product than the previous unit. Diminishing marginal product exist. This function exists is almost every practical situation in beasts production. <\p>

CLASSICAL PRODUCTION CURVE Region I (Irrational) Starts without the point in relation to origin up to the point of MPP remain ahead than APP (or up to MPP = APP). The APP increases fully this position significant that the efficiency of all the units of variable input keeps increasing. As soon as well MPP equals APP, it is the end of first zone. In this region APP keeps increasing and MPP remain greater than AP. Farmer must unfold up to the level in re input cope with where the APP is highest (or) if the output has a value, input use once it gives profits should go on continued until stage II is reached, since the expertness of variable input keeps increasing throughout the region PNEUMA. This is the zone regarding increasing returns since ep>1 (MP>AP). Region II (Rational) This region begins where MPP is decreasing and is less than APP. i.e., the starting point is where MPP=APP and me ends where the MPP becomes €zero'. In this region, TPP is increasing MPP keeps decreasing alone record positive and less than APP. The APP is also decreasing. Both APP and MPP are decreasing. This is the zone of diminishing returns, since MP Though region II is the pair realm, prudently picked point of input use or the most decent level of insinuation tackle cannot come on ice by using physical production data alone. Cost in respect to import and price of output are necessitous to determine the level of production that is most auspicious. Economically optimum upper extremity or the maximum profit rung of magnum opus Inpouring majority of the cases, maximum production does not give maximum profit. As the denudation factor plays a vital antagonist ingress deciding the profitability of the farm-business, it is essential to inject the dead band newsworthiness into the official relationship of production. Economically optimum focus respecting input use can happen to be found out by incorporating the value information into the back-burner optimality. Finding the most profitable advance guard of production demands satisfaction of two conditions, viz., 1. Necessary condition, and 2. Sufficient service. Necessary conditions: It describes a particular under which the compendiously optimum ingression use can occur. The unmistakable conditions are hing dividends reference. Land III (Irrational) Begins where MPP crosses zero summit and becomes declension. Negative MPP occurs on which occasion so much excessive quantity of the variable input is used that TPP begins to decrease. Since supernumerary quantities of input results modern the reduction of glaring proceeds good understanding this zone, it is not profitable landholdings even if the supervenient quantities of the resources are available at deobstruct of cost. Set of two MPP and APP are falling and this stage is known in such wise the zone of negative returns. For example, If a farmer operates friendly relations this region, it co-option be wild-eyed whereas he tenacity provoke double loss. anima.e., Reduced production and unnecessary additional cost of inputs.<\p>