According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore looks like:

Let the production function of a firm be

$Q = 5L^{1/2}K^{1/2}$

Find out the maximum possible output that the firm can produce with 400 units of L and 400 units of K.

What does break even point indicate?

As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................

In given production function $q = f(x_1, x_2)$ what is depicted by $f(tx_1, tx_2) < tf(x_1, x_2)$.

Which of the following is true regarding supply of a commodity?

(A) Technological progress leads to a decrease in the supply of a commodity.

(B) When the price of inputs rises, the supply curve of the good shifts to the left.

(C) Technological progress shifts the supply curve of the firm to the right.

(D) Imposition of a unit tax on a firm shifts the supply curve of the goods produced by the firm to the left.

Choose the correct answer from the options given below:

When output increases with the larger proportion compare to increase in inputs, this return is called?

1. Decreasing Return to scale.
2. Increasing return to scale.
3. Constant Return to scale.
4. Diminishing Marginal Product.