Micro

Production & Costs

Easy

Match List-I with List-II

List-I List-II
(A) Payments by a firm for inputs. (I) Cost of production
(B) Output sold by a firm in the market. (II) Revenue
(C) Inputs are transformed into output. (III) Production
(D) Objective of a firm to maximize. (IV) Profit

Choose the correct answer from the options given below:

List-I	List-II
(A) Payments by a firm for inputs.	(I) Cost of production
(B) Output sold by a firm in the market.	(II) Revenue
(C) Inputs are transformed into output.	(III) Production
(D) Objective of a firm to maximize.	(IV) Profit

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

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

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

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

✅ Correct Option: 1

Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV) -> Let's match each item correctly:

(A) Payments by a firm for inputs refers to the money spent on acquiring raw materials, labor, and other resources needed for production. This is the Cost of production (I).

(B) Output sold by a firm in the market generates income from sales, which is Revenue (II).

(D) The primary objective of any firm is to maximize Profit (IV), which is the difference between revenue and cost.

This matching aligns with fundamental economic concepts where firms incur costs to produce goods, generate revenue through sales, and aim to maximize profits through the production process. -> correct

2025: 30 May Shift 2

Choose the correct statements from the options given below in terms of the shapes of the short run cost curves.

(A) Average fixed cost curve is a rectangular hyperbola.

(B) Total fixed cost is horizontal straight line.

(D) Marginal cost is U shaped.

Choose the correct answer from the options given below:

2025: 29 May Shift 2

When the output added by each additional worker is proportionally less, what it shows?

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: 16 May Shift 1

If the marginal cost(MC) of a perfectly competitive firm is as given below and the price of the product is Rs 15, find the profit-maximizing output of the firm.

output	1	2	3	4	5	6
MC	18	15	10	12	15	24

2025: 13 May Shift 1

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)