The engineering
cost curve are derived with the help of engineering production
function . The productionfunction specified the techniques of
production, the embodiment of labor and capital etc. It means that
each production method is divided into sub activities corresponding
to the various physical and technical phases of production for the
particular commodity. Engineering production method/function are
characterised by a limited number of methods of production. The
production iso-quants are kinked reflecting that the factor
subsititutablity is limited. It means that the factor of production
can be substituted is only possible at kinked of iso-quants.
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