Question
Differentiate between Short Period production and Long Period production function.
✓
Answer
| S no. | Basis | Short Period Production Function (SPPF) | Long Period Production Function (LPPF) |
| 1. | Meaning | It is a production function in which factor ratio changes with the level of output. | It is the production function in which factor ratio remains constant. |
| 2. | Output | Output can only be increased by changing the quantity of variable factors. | Output can be increased by making changes in the quantity of both the fixed as well as the variable factor inputs. |
| 3. | Scale of Production | Scale of production does not change with the change in the level of output. | Scale of production tends to change with the change in the level of output. |
| 4. |  |
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| 5. | Note: | Scale of production means changing both the factors simultaneously. During short period scale of production do not change because only variable factor changes and fixed factor remains constant. But in Long run all the factors change simultaneously. So, scale of production changes in long period. | |
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