Micro

Production & Costs

Medium

Match List-I with List-II

List-I List-II
(A) Total revenue (I) Minimum of LRAC curve.
(B) Supply (II) A firm earns only normal profit.
(C) Shut down point (III) Market price multiplied by the firm's output.
(D) Break-even point (IV) Quantity sold at a given price.

Choose the correct answer from the options given below:

List-I	List-II
(A) Total revenue	(I) Minimum of LRAC curve.
(B) Supply	(II) A firm earns only normal profit.
(C) Shut down point	(III) Market price multiplied by the firm's output.
(D) Break-even point	(IV) Quantity sold at a given price.

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

✅ Correct Option: 4

Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> Let's match each term correctly:

(A) Total Revenue matches with (III) Market price multiplied by the firm's output - Total Revenue (TR) is calculated as TR = Price × Quantity, which is the market price multiplied by the quantity of output the firm sells.

(B) Supply matches with (IV) Quantity sold at a given price - Supply represents the quantity of goods that producers are willing and able to sell at various price levels in the market.

(C) Shut down point matches with (I) Minimum of LRAC curve - In the long run, the shut down point occurs at the minimum of the Long Run Average Cost (LRAC) curve, where price equals minimum LRAC. Below this point, the firm cannot cover its long-run average costs.

(D) Break-even point matches with (II) A firm earns only normal profit - At the break-even point, total revenue equals total cost, meaning the firm earns zero economic profit (only normal profit is earned, which is included in the cost). -> correct

2025: 21 May Shift 1

Which of the following is true about the law of variable proportions?

(A) Total product eventually declines.

(B) Average product is an inverse U shaped curve.

(D) Marginal product can never be negative.

Choose the correct answer from the options given below:

2026: 20 May Shift 1

When 2 units of labour are used then Total Product (TP) = 35. When 3 units of labour are used then TP = 41. Find the value of MPL

2026: 12 May Shift 1

Output increases with which of the following reasons?

(A) Increase in capital.

(B) Increase in labour.

(D) Increase in level of technology.

Choose the correct answer from the options given below:

2026: 31 May Shift 1

When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents:

2025: 29 May Shift 1

What is the main purpose of Cost Reduction Technologies in business?

2025: 21 May Shift 1

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

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