Theory of Production, Cost and Revenue-Theory of production and production function Micro Economics Class 11 In English-CBSE Notes
Explore NCERT Solutions for Class 11 micro economics Chapter Theory of Production, Cost and Revenue Topic Theory of production and production function with simple explanations and free ncert solution in English.
Theory of Production, Cost and Revenue-Theory of production and production function Micro Economics Class 11 In English-CBSE Notes
Popular Topics Covered
Our study material includes
- cbse notes for class 11 micro economics chapter Theory of Production
- Cost and Revenue topic Theory of production and production function in english
- class 11 micro economics chapter Theory of Production
- Cost and Revenue cbse notes
- cbse class 11 micro economics chapter Theory of Production
- Cost and Revenue notes in english
- class 11 micro economics chapter Theory of Production
- Cost and Revenue study notes
All Topics Chapter Theory of Production, Cost and Revenue
- 1. Theory of production and production function
- 2. Theory of cost
- 3. Theory of revenue
- 4. Producers equilibrium
Notes
Theory of Production, Cost and Revenue-Theory of production and production function Micro Economics Class 11 In English-CBSE Notes
Theory of Production, Cost and Revenue
Theory of production and production function
Fixed factors and Variable factors :
Fixed factors - fixed foctors are those factor inputs whose quantity remains same. they do not vary with the volume of output. for e.g. land is a fixed factor and rent paid for land is a fixed cost.
Variable factors - Varible foctors are Those factors which change with a change in the level of output. for e.g. raw material, labour etc.
Short Run and Long Run Production :
Short Run : Short run is that period (only one input is variable and all other inputs are assumed to be constant) where atleast one of the factors of production is fixed.
Long Run : It refers to that period where all factors of production become variable.
Production Functions :
- The functional relationship between input and output is known as production function.
- As per production function, output is a dependent variable and input is an independent variable.
- Production function states that production is a functional relationship between production and its various factors.
Qx = f (L,K,T ..... n)
Where,
Qn = output
L = labour
K = capital
T = level of technology
n = other inputs employed in production.
Assumptions of production funtion :
- The level of technology remains constant.
- The firm uses its input at maximum level of efficiency.
- It relates to particular unit of time.
- A change in any of the variable factors produces a corrosponding change in the level of output.
- The inputs are divisible into most viable units.
There are two types of production function :
(a) Short run production function.
(b) Long run production function.
Short Run Production function : In short run production function, the quantity of only one inputs varies. It occurs in the short run.
Long Run Production function : It occurs in the long run where a firm can change all factors of production.
Returns to factor (Law of variable Proportion) :
- Law of variable proportion states that ''as we increase more and more units of variable factors on a given fixed factors, output first increase at an increasing rate, then at a diminishing rate and finally declines".
- It occurs in the short run.
- This law is also known as "law of diminishing returns".
- Classical economists call this law as law of Diminishing returns whereas it is called as law of variable proportion by modern economist.
| Units of Land | Units Of Labours | Total Product (TP) | Marginal Product (MP) |
| 1 | 1 | 2 | 2 |
| 1 | 2 | 5 | 3 |
| 1 | 3 | 9 | 4 |
| 1 | 4 | 12 | 3 |
| 1 | 5 | 14 | 2 |
| 1 | 6 | 15 | 1 |
| 1 | 7 | 15 | 0 |
| 1 | 8 | 14 | -1 |
Assumptions of Law of variable Proportion :
- Technology remains constant.
- There are two factors of production one inputs factor is variable and other factor is kept constant.
- All units of variable factors are identical in size and quantity.
- A particular production can be produced under varying production of the input combinations.
- Operates in short run.
Concepts of product :
Total product - It refers to the volume of goods and services produced during a specified period of time.
Average Product - It is the per unit production of variable factor. It is calculated by dividing total product with the number of units of variable factor:
AP = TP/N
Marginal Product - Marginal product is the change in the total product resulting from an additional unit of variable factor. It can be expressed as follow:
MPn = TPn - TPn-1
Where,
MPn = marginal product of nth unit
TPn = total product of nth unit
TPn-1 = total product of previous unit
Reason for Returns:
1. Increasing Returns -
(a) Fuller utilization of fixed factor.
(b) Division of labour.
2. Diminishing Returns -
(a) Disturbing the optimum proportion.
(b) Imperfect substitutability of factors of production.
3. Negative Returns -
(a) Over crowding.
(b) Management problem.
Law of Returns to Scale:
- Returns to scale relates to the behaviour of total output as all inputs are varied in the same proportion.
- It is a long run concept, where all factors are variable.
- There are three types of returns to scale -
(a) Increasing Returns to scale.
(b) Constant Returns to scale.
(c) Diminishing Returns to scale.
All Topics Chapter Theory of Production, Cost and Revenue
Theory of Production, Cost and Revenue-Theory of production and production function Micro Economics Class 11 In English-CBSE Notes
Hindi Medium Students/Teachers/Tutors:
All Chapters micro economics Class 11
CBSE Notes for Class 11 micro economics Chapter Theory of Production, Cost and Revenue – Theory of production and production function
The CBSE Notes for Class 11 micro economics Chapter Theory of Production, Cost and Revenue – Theory of production and production function are prepared to help students understand every concept in a simple, clear, and well-organized manner. These notes are based on the latest CBSE syllabus and are suitable for regular classroom learning, homework, revision, and examination preparation. Every topic is explained using easy language so that students can learn important concepts without difficulty and develop a strong academic foundation.
Studying directly from the textbook is essential, but during revision students often need concise study material that highlights only the most important information. These chapter-wise notes provide exactly that. Instead of reading lengthy chapters repeatedly, students can quickly revise definitions, concepts, facts, examples, and important points in a short period of time. This approach saves valuable study time while improving understanding and retention.
Why Study Chapter Theory of Production, Cost and Revenue – Theory of production and production function Using Our Notes?
Every chapter contains several important concepts that require careful understanding. Our notes present these concepts in a logical sequence so students can connect ideas easily. Difficult topics are simplified with easy explanations, making learning enjoyable for students of different learning abilities. Whether you are preparing for classroom discussions, assignments, periodic tests, or annual examinations, these notes provide a reliable source for effective revision.
- Prepared according to the latest CBSE curriculum.
- Simple and student-friendly explanations.
- Chapter-wise organized content for easy learning.
- Important concepts, definitions, and key points included.
- Useful for quick revision before examinations.
- Supports self-study and classroom learning.
- Helps improve conceptual understanding and confidence.
- Suitable for homework, assignments, and test preparation.
Benefits of Reading CBSE Notes Regularly
Consistent revision is one of the most effective ways to achieve academic success. Reading CBSE Notes for Class 11 micro economics Chapter Theory of Production, Cost and Revenue – Theory of production and production function regularly helps students remember important information for a longer period. Since the content is arranged systematically, students can identify important topics quickly and revise them whenever required.
These notes also help students improve answer-writing skills by presenting information in a structured format. Instead of memorizing lengthy paragraphs, students learn how to organize answers using important points and concepts. This not only improves writing quality but also increases confidence during examinations.
How to Use These Notes Effectively
To get the best results, students should first read the NCERT textbook carefully and understand the chapter. After completing the textbook, they should study these notes to reinforce important concepts. During revision, students can focus on highlighted definitions, important facts, and key ideas before solving textbook exercises and practice questions. This learning strategy improves both understanding and long-term memory.
Teachers and parents can also use these notes as a quick reference while helping students revise lessons or complete assignments. Since the content is concise and well-organized, it becomes easier to explain difficult topics within a limited amount of time.
Features of Our CBSE Notes
Every chapter on our platform is created with the objective of making learning easier for students. Our educational team regularly reviews and updates the content according to the latest CBSE guidelines so that students always receive reliable and accurate study material.
- Easy-to-understand chapter explanations.
- Important definitions and key concepts.
- Well-structured content for faster revision.
- Based on the latest CBSE syllabus.
- Helpful for school exams and annual examinations.
- Free online access on desktop and mobile devices.
Prepare Better with Chapter-wise CBSE Notes
Success in examinations depends on consistent practice and smart revision. These CBSE Notes for Class 11 micro economics Chapter Theory of Production, Cost and Revenue – Theory of production and production function are designed to reduce study pressure by presenting important information in a concise and meaningful way. Students can use them throughout the academic session for daily learning as well as last-minute revision before examinations.
Along with these notes, students are encouraged to solve NCERT textbook questions, practice important questions, and attempt sample papers regularly. Combining concept-based learning with regular practice helps improve problem-solving ability, analytical thinking, and overall academic performance. With disciplined study habits and quality learning resources, students can build confidence, strengthen their understanding of every chapter, and achieve excellent results in school examinations.
Theory of Production, Cost and Revenue-Theory of production and production function Micro Economics Class 11 In English-CBSE Notes Study Materials For Class 6 to 12
If you want to improve your academic performance, start studying with free CBSE notes for all classes. These notes are designed to make learning simple, clear, and effective for every student. Choose your class, explore the chapters, and begin your preparation with the latest cbse notes today.
