Total Output - be available Let us assume that machines...

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Total Output: In the act of production, a progressive increase in the input results in a similar increase in the output. There is a significant difference in the composition of input and its effect on the output. In the short run, the total employment of fixed factors of production remains constant as regards quantity and quality. Fixed inputs are lumpy in the sense they are to be employed in a single big unit that may
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Unformatted text preview: be available. Let us assume that machines, factory premises and the manager together make up for a lumpy unit of fixed factors. So long as variable factors are not employed no output can be produced. Since variable factors are divisible into small units, they can be employed and increased in small doses....
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