Micro

Production & Costs

Easy

When labor changes from 3 to 4, the total product changes from 24 to 40, calculate the marginal product.

✅ Correct Option: 3

Option 3: 16 -> Marginal Product (MP) is calculated as the change in total product divided by the change in labor input. Here, MP = (40 - 24) / (4 - 3) = 16 / 1 = 16. When the 4th unit of labor is added, total output increases by 16 units, making the marginal product 16. -> correct

2025: 28 May Shift 1

Arrange the following statements considering the shape of long run marginal costs (LRMC).

(A) As output increases, LRAC initially falls (MC < AC).

(B) For the first unit of output, both LRMC and LRAC are the same.

(D) LRMC curve is therefore a 'U'-shaped curve.

Choose the correct answer from the options given below:

(A), (B), (C), (D)
(B), (A), (C), (D)
(B), (A), (D), (C)
(C), (B), (D), (A)

2025: 3 June Shift 2

The cost of a firm has increased from Rs. $67$ to Rs. $80$ when the units of cotton production rose from $8$ to $9$ . Calculate the marginal cost of a firm?

2025: 3 June Shift 2

In the short run, the shape of the average fixed cost curve for a typical firm is?

2026: 11 May Shift 2

In the short run, Average Variable Cost curve is a U-shaped cost curve because of----------------.

2025: 3 June Shift 2

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:

2025: 26 May Shift 2

If the average fixed cost of production is the fixed cost per unit of output produced. Then it will _______.

When labor changes from 3 to 4, the total product changes from 24 to 40, calculate the marginal product.

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)