Micro

Production & Costs

Medium

Input Output Marginal productivity of factor
$10\ L_1$ $20\ Q_1$ $MP_L = ?$
$12\ L_2$ $25\ Q_2$
$8\ K_3$ $16\ Q_3$ $MP_K = ?$
$10\ K_4$ $20\ Q_4$

Where labour input $L_1$ and $L_2$ are related to output $Q_1$ and $Q_2$ respectively

Capital input $K_3$ and $K_4$ are related to output $Q_3$ and $Q_4$ respectively

Find the values of $MP_L$ and $MP_K$ .

Input	Output	Marginal productivity of factor
$10\ L_1$	$20\ Q_1$	$MP_L = ?$
$12\ L_2$	$25\ Q_2$
$8\ K_3$	$16\ Q_3$	$MP_K = ?$
$10\ K_4$	$20\ Q_4$

$MP_L = 2$ , $MP_K = 2.5$

$MP_L = 25$ , $MP_K = 20$

$MP_L = 2.5$ , $MP_K = 2$

$MP_L = .25$ , $MP_K = 0.20$

✅ Correct Option: 3

$MP_L=\dfrac{\Delta Q}{\Delta L}=\dfrac{25-20}{12-10}=\dfrac{5}{2}=2.5$ . $MP_K=\dfrac{\Delta Q}{\Delta K}=\dfrac{20-16}{10-8}=\dfrac{4}{2}=2$ . So $MP_L=2.5, MP_K=2$ .

2025: 13 May Shift 2

Set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as.........

2025: 26 May Shift 2

Which of the following central problems deals with the choice of technique of production?

2026: 11 May Shift 1

What happens to the total cost (TC) of production if the quantity of output in the production is reduced to 0 (zero)?

Where, TC=Total cost, FC=Fixed Cost, VC=Variable Cost.

2026: 15 May Shift 1

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. When a proportional increase in all inputs results in an increase in output by a larger proportion	I. Constant Returns to Scale
B. When a proportional increase in all inputs results in an increase in output by the same proportion	II. Law of variable proportion
C. When a proportional increase in all inputs results in an increase in output by a smaller proportion	III. Increasing Returns to Scale
D. The tendency of the marginal product first increase and then fall	IV. Decreasing Returns to Scale

Choose the correct answer from the options given below:

2025: 3 June Shift 2

When the additional unit of input is 'crowded' in the production, the output is proportionally less and............

2025: 14 May Shift 1

At the final level of production, a typical firm observed.

Solution

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