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The engineering cost curve are derived with the help of engineering production function .The productionfunction specified the techniques of production, the embodiment of laborand capital etc. It means that each production method is divided into sub activitiescorresponding to the various physical and technical phases of production for the particularcommodity. Engineering production method/function are characterised by a limitednumber of methods of production. The production iso-quants are kinked reflecting that thefactor subsititutablity is limited. It means that the factor of production can be substitutedis only possible at kinked of iso-quants.
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The engineering cost curve is derived with the help of engineering productionfunction. The production function specified the techniques of production, the epitomeof labor and capital etc. it means that in respectively technique of production suchactivates operates which are concerned with the physical and controlled situation of nay product. In physical and technical state of affairs the quantities of factors of production are assessed. Then on the idea of factor prices the cost of each techniqueof production are evaluated. If we sum the cost of production of different techniquesthe total costs of the firm are attained. It is told that such estimates are made on thebasis of sizes of exciting and available plants. Then the production function isassessed and finally the short run and long run cost curves are derived.The engineering production function and engineering cost curve are concerned nextto the production costs. They have nothing to do with the clerical costs. Theengineering production function is confined to some techniques of production whichstate that the factor of the production can be substituted up to a specific limit. In other words the engineering production function is kinked with Isoquant which sate thatfactor of production are substitutable in the range of kinked part of Isoquant
What else can I help you with?
Explain how the diminishing returns influences the shape of the variable cost and total cost curves?
how diminishing returns influences the shapes of the variable-cost and total-cost curves
Why some long-run average cost curves are steeper on the downward side than others?
why some long-run average cost curves are steeper on the downward side than others.
Total revenue and total cost curves?
total cost= total revenue, it is the same thing in different name.
What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
What kind of relationship would you postulate between short-run and long average cost curves when these are not U-shaped as suggested by the modern theories?
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
