CUET Economics 2025 28 May Shift 1 PYQs

How is the value of the average product calculated in the short-run?

1. By dividing the total product by the number of labor.
2. By dividing the change in total product by the change in labor.
3. By dividing the change in total product by the number of labor.
4. By dividing the total product by the change in labor.

In a production function $q = f(x_1, x_2)$ where the firm produces q output using $x_1$ of factor 1 and $x_2$ of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times. then which among the following is correct?

At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___