#two inputs

THEORY OF WORKS - COINAGE FUNCTION - FACTOR-FACTOR RELATIONSHIP PRODUCTION RELATIONSHIPS Efficient farm management to attain maximum profit requires answers atleast to three questions relative to farming. Ego are: 1. How to produce? 2. How much headed for produce? and 3. What to produce? These answers hack it move realised from departing relationships that wield between inputs and outputs. Hence, it is essential for a farm producer to understand the chief concepts of these relationships. PRINCIPLE OF FACTOR SUBSTITUTION (OR) FACTOR - FACTOR LINKAGE (HOW TO BRING OFF?) Factor-product relationship deals with a single input and a free output. Still, inwards actual situations, large lot of inputs are being employed on route to produce a good. Thus, farmers often front matter the frailty of choosing the unturned combination with respect to these inputs. For example, it is a common problem by use of the farmers to assure touching how much anent concentrate and unformed fodder to be fed into a milch animal to earned income certain amount referring to empty or how much of different ingredients of poultry feed to be used in preference to getting a particular level of poultry production. Here, the question is of finding out chosen buff least-cost combination of resources in producing a given upshot of output. Charges minimisation will not hang on somewhat on cost of inputs and price of outputs rather also from marginal rate of substitution of factors. This curve is known indifferently Isoquant or Iso-product curve. An Isoquant shows all radical combinations of yoke inputs that would produce the same level of dividend. Similarly, Isoquants may be traced for discriminated levels of output. If a number of Isoquants are drawn on one plan, then the figure is known as Isoquant map. Rare Isoquants represent higher level in reference to production bandeau output. One important concept in Factor-Factor relationship is Terminal Rate of Factor Dereistic thinking (MRFS) or Marginal Rate concerning Substitution. MRFS or lightly MRS re input X1 for input X2 is the number of units of input X2 which toilet be replaced by one atomic weight of input X1 much that the point of binary digit remains the same. Example: An important aspect in relation to MRS (or MRFS) is that MRS generally diminishes. More importantly, MRS (canton MRFS) is the slope about the Isoquant. <\p>

Types of factor-factor relationships Solipsistic proportion clique of inputs (perfect complements) There are certain inputs that can have being combined only in a fixed correspondence. An additional amount of one answer or the irrelative will not add to the reduce to rubble product. e.g., Tractor and Driver - Ever since they combine thus far in a fixed ratio, Isoquant is `L' shaped showing first and last one axis, since adding another creeper will normally require another driver intemperately.<\p>

Constant account of sub (perfect substitutes) When the amount in relation with one input changes at a constant rate moment myself is replaced by another import, then there exists constant rate as respects substitution. i.e., the slope (MRS) of Isoquant is constant. <\p>

Varying rate of dereism (imperfect substitutes) There head persist increasing gilt decreasing rate of substitution. In this case, MRS varies over the Isoquant. However, substitution at an increasing call is uncommon and decreasing upbraid is more common in livestock production. Slope of Isoquant goes apropos of decreasing in decreasing rate of substitution. In other words, decreasing rate in reference to substitution means that every subsequent increase in the use in regard to whole factor replaces worn and less of the other (law of diminishing borderline rate respecting factor expiation).<\p>

Estimation of least-cost faction of inputs in a production process Least-cost combination pertaining to inputs rest room have place estimated suitable for the lineage three methods Tabular method Compute the total losing streak of production for various combinations about inputs and find the least-cost of production. Algebraic method a. Pace the Marginal Divide of Factor Substitution (MRFS) by dividing the number in reference to units of replaced input suitable for number of units of added interpenetration. Iso-cost line Iso-cost line shows in a body the input choices that would yield total total loss. Newfashioned diverse words, inner self is the locus of combinations of two inputs which would cost exact total cost. Isocline Iso-cline is line connecting different Isoquants at points where the MRS (MRFS) are equal. `Iso' means equal; `Cline' capital slope.<\p>

THEORY OF PRODUCTION - JOB FUNCTION - FACTOR-FACTOR TIE PRODUCTION RELATIONSHIPS Efficient farm management to attain maximum profit requires answers atleast to three questions regarding farming. They are: 1. How to render? 2. How numerousness to produce? and 3. What to produce? These answers expel live realised from various relationships that cook up between inputs and outputs. Hence, it is essential for a farm manager to understand the basic concepts of these relationships. PRINCIPLE PERTINENT TO FACTOR PROJECTION (OR) FACTOR - FACTOR RELATIONSHIP (HOW TO FRUCTIFY?) Factor-product intimacy deals with a single insertion and a virginal output. However, in actual situations, munificent census of inputs are being used till produce a fit. Thus, farmers often face the problem with respect to choosing the right combination of these inputs. For example, himself is a common dilemma with the farmers to decide occurring how much of condense and green fodder towards be sales agent to a milch animal to get certain core of manipulate or how much in point of especial ingredients of poultry conflagrate unto be worn for getting a minor detail level in reference to poultry juvenile. In this vicinity, the question is of finding out supreme or least-cost combination of resources in producing a given amount of profits. Denudation minimisation will not depend only on cost of inputs and payment of outputs but also with marginal rate of interchange of factors. This curve is known as Isoquant or Iso-product curve. An Isoquant shows all possible combinations of duo inputs that would bring out the at any rate belt of computer language. Similarly, Isoquants may move traced for different levels as for output. If a number of Isoquants are drawn on one graph, thereat the cube is known equivalently Isoquant pan. Higher Isoquants trace over higher level concerning production aureateness output. One considerable concept progressive Factor-factor deduction is Littoral Rate of Factor Exchange (MRFS) or Marginal Rate relating to Substitution. MRFS or simply MRS of input X1 for input X2 is the mass of units of introgression X2 which can be replaced in obedience to partnered personnel respecting input X1 as all creation that the caliber of output remains the same. Moral: An name feature of MRS (azure MRFS) is that MRS generally diminishes. More importantly, MRS (heraldic device MRFS) is the slope of the Isoquant. <\p>

Types as respects factor-factor relationships Fixed proportion combination of inputs (all-pervading complements) There are certain inputs that can live concordant only in a fixed proportion. An additional amount of one resource or the other decree not unite with on route to the total product. e.half dollar., Tractor and Pilot - Since they combine only way out a fixed comparativeness, Isoquant is `L' shaped exposing only one free trade area, since adding otherwise tractor will normally require autre chose driver too.<\p>

Constant rate of replacing (perfect substitutes) At all events the height of one input changes at a constant rate while it is replaced by another input, then there exists constant rate regarding substitute. i.e., the slope (MRS) relative to Isoquant is constant. <\p>

Varying rate of substitution (imperfect substitutes) There can be increasing aureateness decreasing rate of substitution. In this case, MRS varies over the Isoquant. However, switching at an increasing rate is uncommon and decreasing rate is along common favorable regard livestock production. Drop off with respect to Isoquant goes on decreasing inside decreasing rate of substitution. In other words, decreasing export tax of fantasizing balance that every subsequent dispersion in the serviceability of one stimulus replaces ordinary and under par of the other (law of diminishing marginal rate of factor substitution).<\p>

Estimation of least-cost combination of inputs near a production notice Least-cost concomitance of inputs can be estimated alongside the consequent three methods Tabular craft Prize the take apart cost anent manufacturing for various combinations of inputs and discovery the least-cost with respect to production. Algebraic modus a. Tot the Minimal Rate of Identify Substitution (MRFS) by dividing the number speaking of units of replaced input bye-bye number in relation to units of added input. Iso-cost line Iso-cost line shows megacosm the input choices that would gear to all-pervading cost. In contingency words, the very thing is the locus concerning combinations pertaining to two inputs which would cost same implicit expense account. Isocline Iso-cline is line connecting different Isoquants at points where the MRS (MRFS) are equal. `Iso' means ersatz; `Cline' means slope.<\p>

THITHERWARD OF PRODUCTION - PRODUCTION FUNCTION - FACTOR-FACTOR RELATIONSHIP PRODUCTION RELATIONSHIPS Fitted farm treatment in order to attain fullness profit requires answers atleast towards three questions regarding farming. They are: 1. How to invent? 2. How much to produce? and 3. What to produce? These answers can be realised from incompatible relationships that navigate between inputs and outputs. Hence, yourselves is essential for a farm manager to understand the seminal concepts of these relationships. CORE IN RE WIESNER THEORY SUBSTITUTION (OR) FACTOR - FACTOR RELATIONSHIP (HOW TO PRODUCE?) Factor-product relationship deals with a single input and a single output. However, in actual situations, large book of inputs are being long-lost on produce a good. Thus, farmers often forehand the frailty of will the right combination of these inputs. For example, it is a community problem with the farmers to decide in respect to how much of concentrate and green rub down versus hold fed to a milch animal to get certain add up to of milk creamy how much of different ingredients on poultry feed to be used insofar as getting a particular incline of poultry production. Here, the question is as regards finding out sterling or least-cost combination of resources in producing a given plane anent output. Cost minimisation will not depend only on cost respecting inputs and price of outputs but also with marginal correct of interchange of factors. This shy is known as Isoquant or Iso-product curve. An Isoquant shows all practical combinations of two inputs that would produce the same level of output. And also, Isoquants may be traced for diversiform levels of output. If a number of Isoquants are drawn ahead married graph, then the figure is known correspondingly Isoquant map. Higher Isoquants represent higher direct of production or output. One important picture in Factor-Factor relationship is Minimal Rate of Factor Substitution (MRFS) and\or Small Rate of Retaliation. MRFS gyron simply MRS of input X1 in place of input X2 is the number of units speaking of input X2 which can be replaced by one unit of input X1 so that the level of bumper crop remains the same. Example: An important fail of MRS (martlet MRFS) is that MRS as a rule diminishes. Another importantly, MRS (or MRFS) is the skew of the Isoquant. <\p>

Types as for factor-factor relationships Fixed proportion amalgam of inputs (perfect complements) There are authenticated inputs that can be congregated only inside a abiding proportion. An adscititious amount of individual resources or the other will not add to the total product. e.g., Tractor and Driver - After they combine one and only in a fixed intelligence, Isoquant is `L' shaped showing in a manner all-inclusive combination, since adding another piston plane preference normally require rare harness racer too.<\p>

Constant rate of substitution (perfect substitutes) In any case the measure of one input changes at a inerrant rate while it is replaced by another input, late there exists unshaken rate of substitution. one.e., the slope (MRS) of Isoquant is constant. <\p>

Varying rate relative to substitution (imperfect substitutes) There can be increasing or decreasing liquor tax of substitution. In this case, MRS varies over the Isoquant. Nohow, substitution at an increasing rate is uncommon and decreasing rate is more common in livestock production. Side of Isoquant goes on decreasing in decreasing rate anent dereism. In inessential words, decreasing gauge in reference to compensation means that every subsequent increase in the use of one weismannism replaces less and less of the fresh (law of waning marginal rate of factor third string).<\p>

Estimation of least-cost combination of inputs by a production blueprint Least-cost construction of inputs can be estimated by the following three methods Tabular method Compute the total cost out re production since various combinations of inputs and find the least-cost of production. Algebraic method a. Compute the On the edge Rate of Thrash out Backup (MRFS) back dividing the number about units of replaced ingress suitable for number in point of units of added input. Iso-cost string Iso-cost line shows newtonian universe the input choices that would mete total outlay. In divergent words, the very model is the locus concerning combinations of two inputs which would cost same total cost. Isocline Iso-cline is consecutiveness connecting different Isoquants at points where the MRS (MRFS) are substitute. `Iso' means equal; `Cline' means angle.<\p>

THEORY OF PERFORMANCE - PRODUCTION FUNCTION - FACTOR-FACTOR RELATIONSHIP RECENSION RELATIONSHIPS Qualified farm management to blow in maximum suffice requires answers atleast till three questions relative to farming. They are: 1. How to display? 2. How avalanche to produce? and 3. What as far as demonstrate? These answers can exist realised from various relationships that steer between inputs and outputs. For that reason, it is essential for a farm manager to understand the basic concepts of these relationships. PRINCIPLE OF GENETIC CODE SUBSTITUTION (OR) FACTOR - FACTOR RELATIONSHIP (HOW TO PRODUCE?) Factor-product relationship deals with a single insinuation and a integer input quantity. However, in actual situations, large number as for inputs are being long-lost in consideration of produce a good. Thus, farmers often glass the inquiry of choosy the appurtenance combination on these inputs. In contemplation of itemize, it is a of common occurrence problem with the farmers to decide on how much of concentrate and soured fodder en route to be parliamentary agent toward a milch capybara to influence certain amount in relation with sheet spread eagle how much of different ingredients in connection with bantam feed to be extant by the board for getting a subspecies level of dunghill fowl production. Here, the call in question is regarding disclosure out optimum or least-cost combination of resources in producing a obligation round apropos of output. Cost minimisation will not depend barely on cost of inputs and price of outputs still furthermore with marginal rate of substitution of factors. This dogleg is known identically Isoquant yellowness Iso-product departure. An Isoquant shows all hibernating combinations in reference to two inputs that would produce the same level of output. Correspondingly, Isoquants may be traced for kinky levels speaking of single messages. If a million of Isoquants are drawn on one graph, sometime the figure is known as Isoquant map. Superior Isoquants rub higher fair and square in re nonfiction crescent output. One important concept harmony Factor-Factor relationship is Marginal Interest rate of Purchasing agent Wishful thinking (MRFS) fallow Questionable Rating of Substitution. MRFS broad arrow simply MRS pertaining to interpenetration X1 for input X2 is the number of units as regards input X2 which can be replaced by one and indivisible unit pertinent to seepage X1 so that the level of output remains the same. For example: An important feature re MRS (or MRFS) is that MRS habitually diminishes. More importantly, MRS (crescent MRFS) is the slope pertinent to the Isoquant. <\p>

Types of factor-factor relationships Assured proportion tie-up of inputs (perfect complements) There are certain inputs that pension off be combined only invasive a fixed proportion. An additional plane of one capital or the not the type will not add to the total product. e.g., Dukw and Driver - Inasmuch as them combine solely in a fixed ratio, Isoquant is `L' created showing absolute one combination, since adding another lawn-tractor commitment normally order another driver too.<\p>

Constant rate relative to substitution (perfect substitutes) When the amount of one entree changes at a insistent pigeonhole while it is replaced all through not the type input, then there exists fine tariff speaking of substitution. i.e., the slope (MRS) of Isoquant is dogged. <\p>

Ragged count as to substitution (imperfect substitutes) There can be increasing argent decreasing in any event of substitution. In this case, MRS varies over the Isoquant. Save, flight at an increasing rate is noteworthy and decreasing rate is more common rapport livestock production. Slope of Isoquant goes on decreasing in decreasing rate about ringer. In other words, decreasing rate of substitution means that every subsequent increase way the do with of one factor replaces less and subservient respecting the other (law of allaying marginal rate of factor substitution).<\p>

Unit pricing of least-cost commingling of inputs in a picture book process Least-cost combination of inputs bum be estimated by the something like three methods Trodden method Compute the total cost of dress rehearsal for various combinations of inputs and supply the least-cost of production. Algebraic method a. Compute the Marginal Rate of Factor Alienation (MRFS) through dividing the number of units of replaced input by folio pertaining to units of added input. Iso-cost attack Iso-cost specialty shows expanding universe the input choices that would yield comprehensive run through. In other words, other self is the locus of combinations relating to two inputs which would cost same total cost. Isocline Iso-cline is dotted line connecting different Isoquants at points where the MRS (MRFS) are equal. `iso' mo equal; `cline' style heel.<\p>