postgraduate diploma in business management 2014/15 theory of production and cost dr. m....

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Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

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Page 1: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Postgraduate Diploma in Business Management 2014/15

THEORY OF PRODUCTION AND COST

Dr. M. Ganeshamoorthy,B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Page 2: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

THEORY OF PRODUCTION AND COST• Production is an activity which transforms

inputs into output. Production may also include changing space (transportation) or changing time (storage).

• Production can be divided into two distinctive periods:

1. Short run production and2. Long run productionShort run is the period of production where at least one input of production remains fixed

Page 3: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

THEORY OF PRODUCTION AND COSTLong run is the period where all inputs of production are variable.

Typically, in the short run labor is considered as the variable input and capital as the fixed factor

The different concepts of production in the short runs as follows:

Page 4: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 5: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 6: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 7: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 8: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and CostExample 1

Page 9: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 10: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 11: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 12: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 13: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 14: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 15: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 16: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 17: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 18: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 19: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 20: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 21: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 22: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 23: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 24: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 25: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 26: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost

Page 27: Postgraduate Diploma in Business Management 2014/15 THEORY OF PRODUCTION AND COST Dr. M. Ganeshamoorthy, B.A (Hons) PDN, PgDED CMB, M.A CMB, Ph.D The Netherlands

Theory of Production and Cost