In the short run, when a fixed input is combined with increasing variable inputs, the following changes in Average Product (AP) and Marginal Product (MP) are witnessed. Select the correct order of such change starting with the first unit employment of variable input.

A. AP and MP both decrease and AP > MP

B. AP and MP both increase and AP < MP

C. AP intersects MP and after that AP > MP

D. AP = MP, for the first level of output

Choose the correct sequence from the options given below:

The firm's total variable cost at output q₁ is

What is the total variable cost for producing 200 vases?

How is the value of the average product calculated in the short-run?

1. By dividing the total product by the number of labor.
2. By dividing the change in total product by the change in labor.
3. By dividing the change in total product by the number of labor.
4. By dividing the total product by the change in labor.

To increase the output by a certain proportion, if inputs need to be increased by more than that proportion, that condition lies in which of the following?

Consider a production function $q = f (x_1, x_2)$ where the firm produces q amount of output using $x_1$ amount of factor 1 and $x_2$ amount of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times.

Identify the correct statement from the following.

As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................