Department of Statistics, S.V. University, Tirupati, India
Online published on 14 July, 2015.
The theory of production has great relevance for the theory of firm. The theory of firm is concerned with what level of output it will produce so as to maximize its profits. In order to fix this profit maximizing output, besides the demand conditions (average costs of production. In addition to the prices of the factors of production, the changes in marginal and average costs of production as a result of increase in output are determined by the physical relationship between inputs and output. The main aim of present research study is to measure the output scale efficiency in Indian industry during the period 2010–11.
