Micro

Production & Costs

Easy

Which function tells us the relation between inputs and output?

Consumption.

Production.

Demand.

Supply.

✅ Correct Option: 2

Option 1: Consumption -> Relates to the use of goods and services by households, not input-output relationship.

Option 2: Production -> Shows the relationship between inputs and outputs in the production process.

Option 3: Demand -> Shows relationship between price and quantity demanded, not inputs and outputs.

Option 4: Supply -> Shows relationship between price and quantity supplied, not directly inputs and outputs.

Hence, Option 2: Production -> The production function is a technical relationship that shows how inputs (like labor, capital, raw materials) are transformed into outputs (goods and services). It is expressed as Q = f(L, K, ...) where Q is output and L, K are inputs. This function helps firms understand productivity and optimize resource allocation. -> correct

2025: 13 May Shift 2

In a long run average cost curve which point is said to be the constant return to scale?

2026: 21 May Shift 1

Which of the following cost curve takes the shape of rectangular hyperbola?

2025: 2 June Shift 1

What does break even point indicate?

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 1

Marginal cost curve intersects average cost curve at ..........

2025: 22 May Shift 1

A firm produce $q$ amount of output using $x₁$ amount of factor 1 and $x₂$ amount of factor 2.

Match List-I with List-II

List-I	List-II
(A). Cobb-Douglas Production Function	(I). $f(tx_1, tx_2) > t \cdot f(x_1, x_2)$
(B). Constant returns to scale	(II). $f(tx_1, tx_2) < t \cdot f(x_1, x_2)$
(C). Increasing returns to scale	(III). $q = x_1^\alpha x_2^\beta$
(D). Decreasing returns to scale	(IV). $f(tx_1, tx_2) = t \cdot f(x_1, x_2)$

Choose the correct answer from the options given below:

Which function tells us the relation between inputs and output?

Solution

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CUET Economics Past Year Questions (Topic-Wise)