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1. Nature of the commodity:
Durable goods can be stored for a long time. So, the producers can wait until they get a high price. Once they get higher price, larger supply is possible. The elasticity of supply of durable goods is high. But perishables are to be sold immediately. So perishables have low elasticity of supply.

2. Cost of production:
When production is subject to either constant or increasing returns, additional production and therefore increased supply is possible. So elasticity of supply is greater. Under . diminishing returns, increase in output leads to high cost. So elasticity of supply is less.

3. Technical condition:
In large scale production with huge capital investment, supply cannot be adjusted easily. So elasticity of supply is lesser. Where capital equipment is less and technology simple, the supply is more elastic.

4. Time factor:
During very short period when supply cannot be adjusted, elasticity of demand is very low. In short period, variable factors can be added and so supply can be adjusted to some extent. So elasticity of supply is more. In long period, even the fixed factors can be added and hence supply is highly elastic.

1. Elasticity of supply may be defined as the degree of responsiveness of change in supply to change in price on the part of sellers.
2. It is Mathematically expressed as,

Elasticity of supply = Proportionate change in supply / Proportionate change in price
e_s = (ΔQS/QS) / (ΔP/P)
e_s = (ΔQS/ΔP) × (P/Qs)
Where Q_s represents the supply, P represents price, ∆ denotes a change.

Answer: (a) Primary

Answer:(a) Service

The supply of a commodity depends on factors such as the price of the commodity, price of labour, price of capital, the state of technology, number of firms, prices of related goods, and future price expectations, and so on. Mathematically the supply function is Q_S = f(P_x, P_r, P_f, T, O, E)

Where Q_S = Quantity supplied of x commodity
P_x = Price of x Commodity
P_r = Price of related goods
P_f = Price of factors of production
T = Technology
O = Objective of the producer
E = Expected Price of the commodity.

Assumptions:
Law of Supply is based on the following assumptions.

1. There is no change in the prices of factors of production
2. There is no change in price of capital goods
3. Natural resources and their availability remain the same
4. Prices of substitutes are constant
5. There is no change in technology
6. Climate remains unchanged
7. Political situations remain unchanged
8. There is no change in tax policy

Answer: (c) Knight

(d) All of the above

Answer: (c) 5

(c) Returns to Scale

Answer: (d) TP/N

(a) Marginal product

(c) MRTS and price ratio are equal to each other

Answer: (c) Capital

(c) Organizer

(d) Land and Labour

(c) The quantity of inputs and the quantity of output.

Marginal product is the addition made to the total product when one more unit of the variable input is employed.
MP = TP (n)-TP (n- 1)
(OR)
Marginal product is the ratio of the change in the total product to the change in the units of input.
MP = ∆TP / ∆N

1. The iso – cost line is an important component in analysing producer’s behaviour.
2. The iso – cost line illustrates all the possible combinations of two factors that can be used at given costs and for a given producer’s budget.
3. Simply stated, an iso – cost line represents different combinations of inputs which shows the same amount of cost.
4. The iso – cost line gives information on factor prices and financial resources of the firm.
5. It is otherwise called as “iso – price line” or “iso – income line” or “iso – expenditure line” or “total outlay curve”.

(d) Equal Product Curve

(b) Must be less than average product

The Conditions For Producer’S Equilibrium:

1. The Iso-cost line must be tangent to the Iso-quant curve.
2. At the point of tangency, the Iso-quant curve must be convex to the origin or MRTSLK must be declining.

Answer: (b) Positive

1. Production function refers to the relationship among units of the factors of production [inputs] and the resultant quantity of a good produced [out put].
2. According to George J. Stigler, “ Production function is the relationship between inputs of productive services per unit of time and outputs of product per unit of time.

(b) Production Function

(b) It is mobile

The Cobb-Douglas production function was developed by Charles W.Cobb and Paul H. Douglas.
Cobb-Douglas production function describes how much output can be made with capital and labour inputs.
Q = AL^α K^βα
Q – output, A – positive constant, K – capital, L – Labour
α and β – Elasticity coefficients of outputs for the inputs,
α + β = 1 denotes constant returns to scale.

(a) Increasing returns

(b) The Law of Variable Proportions

(a) Increasing returns to scale

(c) Constant returns to scale