Micro

Production & Costs

Medium

Match List-I with List-II (TP : TOTAL PRODUCT; L: UNITS OF LABOUR)

List-I List-II
(A) $TP/L$ (I) Total Product is maximum
(B) $\Delta TP/\Delta L$ (II) Marginal product
(C) $\sum MP$ (III) Total product
(D) $MP=0$ (IV) Average Product

Choose the correct answer from the options given below:

List-I	List-II
(A) $TP/L$	(I) Total Product is maximum
(B) $\Delta TP/\Delta L$	(II) Marginal product
(C) $\sum MP$	(III) Total product
(D) $MP=0$	(IV) Average Product

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

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

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

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

✅ Correct Option: 3

Option 3: (A) - (IV), (B) - (II), (C) - (III), (D) - (I) -> Let's match each item correctly:

(A) TP/L = Total Product ÷ Labour units = Average Product (AP), which measures output per worker → matches (IV)

(B) ΔTP/ΔL = Change in Total Product ÷ Change in Labour = Marginal Product (MP), which measures additional output from one more unit of labour → matches (II)

(C) ∑MP = Sum of all Marginal Products = Total Product (TP), since total product is the cumulative sum of marginal contributions → matches (III)

(D) MP=0 means adding more labour doesn't increase output, which occurs when Total Product reaches its maximum point (the peak of TP curve) → matches (I)

This matching represents fundamental production theory relationships where AP measures average productivity, MP measures marginal productivity, their sum gives TP, and TP is maximized when MP becomes zero. -> correct

2025: 16 May Shift 1

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.

(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:

2026: 11 May Shift 1

Which of the following cost curve represents the rate of change in the total cost of production in the production function?

2025: 13 May Shift 2

When we have proportionately more output than input this economic concept is known as .........

2026: 23 May Shift 1

The average fixed cost (AFC) decreases as output (q) increases. If we multiply any value q of output with its corresponding AFC, we always get a constant, namely ___________.

2025: 29 May Shift 2

Arrange the following statements in chronological order in respect to the impact of a unit tax on supply:

(A) Imposition of unit tax increases the price of commodities.

(B) Increased prices will lead to an increase in LRAC and LRMC.

(D) At any given market price, the firm supplies fewer units of output.

Choose the correct answer from the options given below:

2025: 30 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Production function	(I) $x_1^α x_2^β$
(B) Constant return to scale	(II) $α + β = 1$
(C) Increasing return to scale	(III) $α + β < 1$
(D) Decreasing return to scale	(IV) $α + β > 1$

Choose the correct answer from the options given below:

Solution

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