UNIT III
PRODUCTION AND COST ANALYSIS
Production function - Returns to scale - Production optimization - Least cost input
Isoquants - Managerial uses of production function.
Cost Concepts - Cost function - Determinants of cost - Short run and Long run cost
curves - Cost Output Decision - Estimation of Cost.
TWO MARKS
1. Define Production.
2. Write a note on Production function
3. What do you mean by Isoquant?
4. What is Isocost Line of Budget line?
5. Define Expansion path.
6. Define Marginal rate of technical substitution (MRTS).
7. What do you mean by kinked isoquant?
8. Define opportunity costs.
9. Distinguish: Explicit and Implicit cost.
10. Write a note on sunk costs.
11. State the determinants of cost function.
12. Distinguish: Private cost and social cost
13. Distinguish: Short run and Long run cost.
14. Types of Isoquant
15. Define Cost function.
16. Define Production optimization.
17. State the managerial uses of production function
Study various types of cost concepts for TWO marks
16 Marks
1. Define Production function. Explain the nature and managerial uses of production function.
2. Discuss short run Analysis of production function or Explain the production function with one variable input.
3. Explain the production function with two variable inputs.
4. Define Isoquant. Explain the properties of Isoquants
5. Discuss the Least cost combination of input when
i) Production of Given output at minimum cost
ii) Production of Maximum output with a given level of cost
6. Explain the Least cost combination of input when
i) Change in firm’s Resources and output
ii) Changes in Factor prices and choice of Techniques
7. Elucidate the returns to scale or Explain laws of returns to scale in long run production function
8. Discuss the various cost concepts used in cost analysis.
9. Explain the cost-output relationship in the short run cost function.
10. Explain the cost-output relationship in the long run cost function.
11. Explain the various economies of scale.
12. Explain the managerial uses of cost function
13. Discuss the methods to estimate cost function.