Production & Costs

PGDM
Production
 Production
 Goods
 Services

 Production Function

 Technical Efficiency

 Economic Efficiency
Cont.
 Variable Inputs/Costs

 Fixed Inputs/Costs

 Quasi Fixed Inputs

 When output=0, No
need to produce

 Fixed & Variable

Proportions
Production
Fixed Cost

Variable Cost

Total Cost

Marginal Cost

Sunk Cost

Avoidable Cost
Cost: Types
 Cost Calculations
Output Variable Fixed Total Marginal AVC AFC ATC
Cost Cost Cost Cost

0 $0 $10

1 $10

2 $17

3 $25

4 $40

5 $60

6 $110
To be continued………..