factor product relation by dr Reshma kaushal.pptx

Factor product relationship by Dr Reshma Kaushal sgcars

1. Factor – Product relationship

2. Doses of f er tili zer (Rs.) X Marginal dose X Total production of wheat (Kg) Y Marginal yield (kg) Y Marginal rate of returns (kg) Y/X - 1300 - - 10 10 1350 50 50/10=5 20 10 1400 50 50/10=5 30 10 1450 50 50/10=5 40 10 1500 50 50/10=5 50 10 1550 50 50/10=5

3. Wheat seed rate (Kg) M a r g i n a l dose (Kg) T o t a l production of wheat (Kg) M a r g i n a l production Y M a r g i n a l rate Y / X 10 - 1000 - - 15 5 1025 25 25/5=5 20 5 1075 50 50/5=10 25 5 1150 75 75/5=15 30 5 1250 100 100/5=20 35 5 1375 125 125/5=25

4. Fertilizer input X Marginal dose X Total wheat produc ti on (Kg) Marginal production Y Marginal rate o f c h a n g e Y/X - 500 - - 10 10 1400 900 900/10=90 20 10 2100 700 700/10=90 30 10 2600 500 500/10=50 40 10 3000 400 400/10=40 50 10 3300 300 300/10=30 60 10 3500 200 200/10=20

5. Units of f er tili zers input X Total P r o du ct (TP) Y Average Product A P =(Y/X ) Marginal Product M P = ∆ Y ∆X Remarks - - Increasing at increasing rate 1 2 2 2 2 5 2.50 3 3 9 3.00 4 4 14 3.50 5 Increasing at constant rate 5 19 3.80 5 6 23 3.83 4 Increasing at decreasing rate 7 26 3.71 3 8 28 3.50 2 9 29 3.22 1 10 29 2.90 11 28 2.54 -1 Decreasing at increasing rate 12 26 2.16 -2

6. 25 – 20 – 15 - 10 - 5 - 0 - I 1 I 2 I 3 I 4 I 5 I 6 I 7 I 8 I 9 I 12 INPUT (X 1 ) I Irrational stage II Rational S tage III Irrational Stage I I 10 1 1 MPC AP C X Y 35 – 30 – TP OUTPUT (Y 1 )

7. E p = ∆ Y / Y x 100 ∆ X / X x 100

8. F er tili z er doses Total yield attributed Further (Y) ∆Y ∆X ∆Y / Yx100 ∆X/X x 100 EP AP 1. 103 - - - - - 103 2. 174 71 - 68.90 100 0.689 87 3. 223 49 1 28.16 100 0.282 74.33 4. 257 34 1 13.23 100 1.132 64.25 5. 281 24 1 9.33 100 0.093 56.2 6. 298 17 1 5.71 100 0.057 49.67 7. 308 10 1 4.81 100 0.48 44.00