 module 137 in production analysis and that is the budget constraint. We have already studied the budget constraint in our consumer analysis and when it comes to the production analysis we think that it might be different but here the one very narrow line that we have to keep in our mind that this producer that or the entrepreneur is nothing else than the actual consumer when he has to purchase the factors of production. Or in other words, if I say, the consumer who goes to the market for his consumption, when we see the utilization pattern that he is taking good x1 or x2 and the decision he was making, then when the producer, although he has to buy his factors of production and use it for his own production, not only for his consumption, but his behavior is almost like that of the consumer because he has to go to the factor market and purchase the things under the prices of the market and in the same way he has to rationalize the prices and quantity. So when we say that the consumer is always rational, the producer here basically owns the factors of production when he is purchasing, he is behaving like a consumer. So this budget constraint that the consumer has, there will be a notational difference, otherwise it will be the similar just like the consumer budget constraint. Now when we say that the consumer buys two goods in the bundle of his consumption, x1 and x2 and for those two goods of consumption, there is a market price attached and with those two prices, when he multiplies the goods, then he decides that the income that he has should be totally equated as much as these two assets are being spent, that is, he should not exceed his income. So similar in the manner, when we explain that now the producer is going to purchase two factors of production, factor one or the factor two, now here we are giving him notation capital and labor, otherwise the notation that we used in the consumption bundle of x1 and x2, even we can utilize here and now the total budget that the producer or the entrepreneur is having in his hand, he has to spend for the purchase of the two inputs, capital or labor or it can also be two parts of the labor, l1 or l2 and likewise it can be k1 or k2, anything like this and what will be the market prices of these factors of production. So multiplying by their respective prices now, the producer is going to decide that how much he is going to allocate amount to one input or to the other input in a manner that the total expenditure is not more than the total allocated budget that he is having in his own pocket. Now coming to the point, when we explain in the consumption bundle that the price of one in consumer good and price of the two, it must be equal to or less than the income of the consumer, so if here we can explain this x1 and x2 are the factors, so then the same equation can be utilized for the producer budget or in other manner we can have that the p1 of k1 mean one input plus price of second that should be equal to m or we can say that it is the b budget or the cost that the producer is having and we know that the price of k we mostly indicate by r k and price of labour we explain by wage that will be equal to like this equal to the cost. So the amount of the money now spent on the two goods that are utilized for this production process, it should not exceed the total budget that is in the pocket of the entrepreneur.