CUET Economics Micro > Production & Costs PYQs

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 ___________.

Match the LIST-I with LIST-II | LIST-I | | LIST-II | |---|---|---| | A. Production function | I. | Additional Product with change in input. | | B. Marginal Product (MP) | II. | Marginal product first increases and then begins to fall. | | C. Law of variable proportions | III. | Change in output due to change in factors. | | D. Returns to Scale | IV. | Relationship between inputs used and output produced. | Choose the correct answer from the options given below:

Keeping other factor constant, A change in the price of input brings about a change in the supply of a commodity. Arrange the process of this change in the correct sequence: A. The average cost of production of the commodity reduces. B. The supply of a commodity increases. C. The profit per unit of the producer rises. D. If the price of input falls. Choose the correct answer from the options given below:

The Total Fixed Cost of producing a good is Rs. 20. The Total Cost of producing 3 units of a good is Rs. 44 while that of producing 4 units is Rs. 49. What would be the Marginal Cost of producing the 4th unit of the good?

When a proportional increase in all inputs results in an increase in output by the half proportion, then the production function is said to display which returns to scale?

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

Find the returns to scale for the following Cobb--Douglas production function. $Q=L^{1/3}K^{3/4}$

Which one of the following conditions is incorrect? (Where, SMC - Short term Marginal Cost, AVC - Average Variable cost, SAC - Short run average cost, LRMC - Long run marginal cost, LRAC - Long run average cost.)

Match List-I with List-II | List-I | List-II | |---|---| | (A) Constant returns to scale | (I) When a proportional increase in all inputs results in an increase in output by a larger proportion. | | (B) Decreasing Returns to Scale | (II) The relationship between inputs used and output produced by the firm. | | (C) Increasing Returns to Scale | (III) When a proportional increase in all inputs results in an increase in output by a smaller proportion. | | (D) Production function | (IV) When a proportional increase in all inputs results in an increase in output by the same proportion. | Choose the correct answer from the options given below:

The marginal product of an input factor initially rises with its employment level and then, after a certain level of employment, it starts falling. this is known as:

When a proportional increase in all inputs results in an increase in output by a smaller proportion. This represents:

Find the value of total revenue from the following table and arrange those values of total revenue in decreasing order. | Option | Average revenue | Quantity | |---|---|---| | A | 10 | 2 | | B | 12 | 1.5 | | C | 14 | 1.0 | | D | 16 | 0.5 | Choose the correct answer from the options given below:

| 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 $MP_K$.

Find the correct statements from the following in respect to production: A. Average Product of Labour ($AP_L$)= Total Product of Labour / Labor. B. Marginal Product of Labour ($MP_L$)= Change in total Product of Labour / Change in Labour. C. Addition input gives constant return in increasing return to scale concept. D. Law of variable proportions say that the marginal product of a factor input initially rises with its employment level, then after certain level it start falling. Choose the correct answer from the options given below:

What are the values of marginal product and average product, when changes in labour from 3 to 4 with leads to changes in total product from 40 to 50?

Select the correct statements in respect to the relationship between short-run cost curves. A. Marginal cost (SMC), average variable cost(AVC) and short run average cost curves(SMC) are 'U' shaped. B. SMC curve cuts the AVC curve from below at the minimum point of AVC. C. AVC curve cuts the SMC curve from below at the minimum point of SMC. D. SMC curve cuts the SAC curve from below at the minimum point of SAC. Choose the correct answer from the options given below:

The set of all possible combinations of the two inputs that yield the same maximum possible level of output is called?

When 2 units of labour are used then Total Product (TP) = 35. When 3 units of labour are used then TP = 41. Find the value of MPL

Given, TC at 4 level of output is Rs.49 TC at 5 level of output is Rs.53 TC at zero level of output is Rs.20 Find the value of AVC (in Rs.) at 5 level of output?

A producer supplies 400 units when the price per unit is Rs.10. The price is increased to Rs.11 and the price elasticity of supply is 2. How many units will the producer supply?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Total Cost (TC) | (I) Total variable cost/ Quantity (TVC/Q) | | (B) Average Variable Cost (AVC) | (II) Total Fixed Cost / Quantity (TFC/Q) | | (C) Short run average cost (SAC) | (III) Total Variable Cost + Total Fixed Cost. | | (D) Average fixed cost (AFC) | (IV) Average Variable Cost + Average Fixed Cost. | Choose the correct answer from the options given below:

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:

Match the LIST-I with LIST-II | LIST-I | LIST-II | |---|---| | A. Short run marginal cost | I. A rectangular hyperbola shaped curve whose value decreases with increase in output. | | B. Total fixed cost | II. The shape of this cost curve is U-shaped and its value is undefined at zero output. | | C. Average fixed cost | III. An upward sloping curve derived grom the vertical summation of TFC and TVC. | | D. Total Cost | IV. A horizontal straight line, the value of which cannot be changed. | Choose the correct answer from the options given below:

Which of the following statements reflect average fixed cost? A. Its curve is 'U' shaped and at zero level of output, it is undefined. B. When output is very close to zero, it is arbitrarily large, and as output moves towards infinity, it moves towards zero. C. In the short run, it cannot be changed. D. A rectangular hyperbola shaped curve whose value decreases with increase in output. Choose the correct answer from the options given below:

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:

Identify the correct statements from the following: A. SMC curve cuts AVC curve from below at the minimum point of AVC B. SMC curve cuts the SAC curve from below at the minimum point of SAC C. Average fixed cost curve is upward sloping D. LRMC curve cuts the LRAC curve from below at the minimum point of LRAC Choose the correct answer from below:

An isoquant ________ A. Represents the same level of output and input. B. Yield the same maximum possible level of output from the set of all possible combinations of two inputs. C. Yield different level of output from the set of all possible combinations of two inputs. D. Is an alternative way of presenting the production function. Choose the correct answer from the options given below:

Choose correct statements from the following with reference to short-run cost curves: (A) AVC and AC curves are 'U'-shaped. (B) SMC curve cuts the AVC curve from below at the minimum point of AVC. (C) AVC curve cuts the SMC curve from below at the minimum point of SMC. (D) SMC curve is 'U' -shaped. Choose the correct answer from the options given below:

Which of the following law depict that "Marginal product of a factor input initially rises then after reaching a certain level of employment, it starts falling".

Keeping all other inputs constant, when a firm changes the labour from 3 to 4, the total product changes from 40 to 50. What is the marginal product of the 4th unit of labour?

The difference between firms total revenue and total cost is called?

Select the correct statements in the context of relation between AP and MP. (A) As long as the value of MP remains higher than the value of the AP, the AP continues to rise. (B) When AP falls, MP has to be less than AP. (C) At the first unit of variable input ,AP and MP are same (D) MP curve cuts AP curve from above at its minimum. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Average product of labour | (I) TVC/q | | (B) Marginal product of labour | (II) TPL/L | | (C) Average variable cost(AVC) | (III) Δ TPL/ΔL | | (D) Average Fixed Cost(AFC) | (IV) TFC/q | Choose the correct answer from the options given below:

Marginal Product of labour is inverse'U'-shaped because of :

Choose the correct statement with respect to long run production function- (A) There is no fixed factor of production. (B) All inputs can be varied. (C) Average and Marginal cost curves are U shaped. (D) Decreasing Returns to Scale is not applicable. Choose the correct answer from the options given below:

Output increases with which of the following reasons? (A) Increase in capital. (B) Increase in labour. (C) Increase in cost of inputs. (D) Increase in level of technology. Choose the correct answer from the options given below:

With the change in one variable input, keeping the factors constant, if the Marginal Physical Product is positive, the Total Physical Product will be----------

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

Let the production function of a firm be $Q = 5L^{1/2}K^{1/2}$ Find out the maximum possible output that the firm can produce with 400 units of L and 400 units of K.

The given the Cobb-Douglas production function $Q = L^{2/3}K^{1/3}$, which of the following is correct about this production function? A. The firm produces Q amount of output using L and K inputs only. B. The given production function exhibits decreasing returns to scale. C. The given production function exhibits constant returns to scale. D. The given production function exhibits increasing returns to scale. Choose the correct answer from the options given below:

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

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.

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:

Choose the correct statements considering the relationship between marginal product and average product. (A) Average product and marginal product curve are 'U'shaped. (B) Average product and marginal product curve are inverse 'U'shaped. (C) When the average product increases, the marginal product is greater than the average product. (D) When the average product decreases, the marginal product is less than the average product. Choose the correct answer from the options given below:

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

If all the resources are used in the production of cloth, the curve which gives the maximum amount of cloth produced in the economy for any given amount of machine is called?

The relationship between an increase in variable input and output when all other inputs are held constant is referred to as.

When a firm increases its output and the average cost rises, this phase in the production process is shown as?

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Payments by a firm for inputs. | (I) Cost of production | | (B) Output sold by a firm in the market. | (II) Revenue | | (C) Inputs are transformed into output. | (III) Production | | (D) Objective of a firm to maximize. | (IV) Profit | Choose the <b>correct</b> answer from the options given below:

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

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?

Which one of the following leads to the law of variable proportions?

Identify the correct statements from the following: (A) As long as MP>AP, the average Product (AP) can rise even when the Marginal Product (MP) is falling. (B) The law of variable proportions operates only if the factor ratio happens to change. (C) Total Product (TP) must increase no matter if there are increasing or decreasing returns to a factor. (D) Marginal Product (MP) = Average Product (AP), when AP is maximum. Choose the correct answer from the options given below:

Chronologically, arrange the following statements in the context of shape of AP curve. (A) MP starts falling, the AP continues to rise as long as MP remains higher than AP. (B) At the first level of output, the MP and the AP are the same. (C) MP fall sufficiently, its value becomes less than the AP and the AP also falls. (D) MP rises, AP being the average of marginal products, also rises, but rises less than MP. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Total Cost | (I) Change in total cost when an additional unit of output is produced. | | (B) Marginal Cost | (II) Vertical summation of Average Fixed Cost (AFC) and Average Variable Cost (AVC) curves. | | (C) Fixed Cost | (III) Explicit Costs + Implicit Costs. | | (D) Short period Average Cost (AC) Curve | (IV) Does not change with increase or decrease in output. | Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) The minimum level of profit that is needed to keep a firm in the existing business. | (I) Super-normal profit | | (B) Profit that a firm earns over and above the normal profit. | (II) Loss | | (C) AR < AC | (III) Break even point | | (D) The point of minimum average cost at which the supply curve cuts the AC curve. | (IV) Normal Profit | Choose the correct answer from the options given below:

Extension of supply occurs due to change in _________

The problem of 'what to produce' relates to?

When some resources are shifted from Use 1 to Use 2 (given technology), the Marginal Rate of Transformation will

What does break even point indicate?

Under perfect competition, for the producer to be in equilibrium:

When Marginal Product is constant?

Average Fixed Cost (AFC) is indicated by?

Stages of production are the consequences of:

Select the INCORRECT condition for profit maximisation in the perfect market. 1. The price must equal to MC. 2. Marginal cost must be non-decreasing. 3. Price must be less than the average cost. 4. Price must be greater than the average cost.

<img src="https://balti.afterboards.in/4g5jXzykuZZBgyK" width="400px"/> The firm's total variable cost at output q₁ is

From the following which is incorrect with respect to firm's profit maximization in long run? 1. Price = Long Run Marginal Cost 2. LRMC is first decreasing and then increasing 3. Price = Short Run Marginal Cost 4. Price ≥ Long Run Average Variable Cost

From the following which production function exhibits increasing returns to scale?

Choose the correct statements from the options given below in terms of the shapes of the short run cost curves. (A) Average fixed cost curve is a rectangular hyperbola. (B) Total fixed cost is horizontal straight line. (C) Average variable cost is upward sloping. (D) Marginal cost is U shaped. Choose the correct answer from the options given below:

The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge.

A firm wishes to maximize its profit, find the correct conditions from the following, that must be held by the firm at q₂ at which its profit is maximum. (A) The price must be less than the average variable cost (B) The price must be greater than the average variable cost (C) Marginal cost must be non-decreasing (D) The price, p, must equal MC Choose the correct answer from the options given below:

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:

Arrange the given statements to show the impact on a firm's supply curve due to its determinants. (A) Organisational innovation allows the firm to use fewer units of inputs. (B) Any factor that affects a firm's marginal cost curve is a determinant of its supply curve. (C) At any given market price, the firm now supplies more units of output. (D) The marginal cost will shift downward. Choose the correct answer from the options given below:

The point of minimum average cost at which the supply curve cuts the long run average cost curve is called?

When Marginal productivity starts decreasing but remains positive , Total Productivity is ______.

At zero level of output ,if the total cost(TC) is 20. What will be the value of the Average Fixed cost (AFC) at the 6th level of output?

Which of the following cost curve has the shape of a rectangular hyperbola?

The shape of the average fixed cost curve is ........................

In a production function $q = f(x_1, x_2)$ where the firm produces q output using $x_1$ of factor 1 and $x_2$ of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times. then which among the following is correct?

Which statement is incorrect in the context of relationship between AVC and SMC?

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. (C) The firm's long run supply curve shifts to the left. (D) At any given market price, the firm supplies fewer units of output. Choose the correct answer from the options given below:

When the output added by each additional worker is proportionally less, what it shows?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Production function | (I) $f(tx_1, tx_2) > t f(x_1, x_2)$ | | (B) Constant returns to scale | (II) $f(tx_1, tx_2) < t f(x_1, x_2)$ | | (C) Increasing returns to scale | (III) $f(x_1, x_2)$ | | (D) Decreasing returns to scale | (IV) $f(tx_1, tx_2) = t f(x_1, x_2)$ | Choose the correct answer from the options given below:

Choose the correct equations in the context of costs. (A) TFC = AFC × quantity (B) LRMC = (TC at $q_n$ units) – (TC at $q_{n-1}$ units) (C) TC = TVC × TFC (D) LRAC = TC/q Choose the correct answer from the options given below:

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

The relationship between inputs and outputs of a firm is given by ___________

The slope of Production Possibility curve is represented by ___________.

A firm will shut down in the short run if__________.

Arrange the following statements in the context of "U" shaped SAC curve. (A) SAC is the sum of AVC and AFC. (B) SAC falls when AVC and AFC decrease. (C) When the fall in AFC is greater than the rise in AVC and SAC is still falling. (D) When a rise in AVC becomes greater than the fall in AFC, SAC rises. Choose the correct answer from the options given below:

Which of the following states that "The marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling"?

At the positive level of output, where a firm's profit is maximized, the following conditions must hold. (A) $p = LRMC$ (B) LRMC is non-decreasing at $q_0$ (C) $p \leq LRAC$ (D) $p \geq$ min. LRAC Choose the correct answer from the options given below:

Choose the correct statements in respect of returns to scale. (A) Decreasing returns to scale occur when a proportional increase in all inputs is less than output. (B) Constant returns to scale occur when a proportional increase in all inputs is the same as output. (C) In the long run, factors of production are increased by the same proportion, or factors are scaled up. (D) Increasing returns to scale occur when a proportional increase in all inputs is less than output. Choose the correct answer from the options given below:

At the market price of Rs 10, a firm supplies 200 units of a good. If the market price increases to Rs 30, and the price elasticity of the firm's supply is 2. Then at new price what quantity will be supplied by the firm?

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.

What does the rectangle OVBq₀ depicts in the given figure? <img src="https://balti.afterboards.in/Ob3rMiI54qCpKWc" width="300px"/>

Which of the following statements are correctly explaining the relationship between the marginal revenue (MR) and price elasticity of demand? (A). Price elasticity is less than 1 when MR is negative. (B). Price elasticity is more than 1 when MR is negative. (C). Price elasticity is more than 1 when MR is positive. (D). Price elasticity is less than 1 when MR is positive. Choose the correct answer from the options given below: 1. (A) and (D) only 2. (A) and (B) only 3. (B) and (D) only 4. (A) and (C) only

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. (C) After a certain point, LRAC rises (MC > AC). (D) LRMC curve is therefore a 'U'-shaped curve. Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (B), (A), (C), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)

The short run supply curve is represented as? 1. The rising part of the marginal cost curve. 2. The rising part of the marginal cost curve from and above the minimum average variable cost curve. 3. The rising part of the marginal cost curve from and above the minimum average cost curve. 4. The marginal cost curve.

In the short run, the shape of marginal cost, average variable cost and short run average cost curves are:

Calculate the short run average cost when total cost is 95 with 9 units of output.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Short run Marginal Cost (SMC) | (I) ΔTC/Δq | | (B) Long run Average Cost (LRAC) | (II) TVC/q | | (C) Average Variable Cost (AVC) | (III) TC/q | | (D) Average Fixed cost (AFC) | (IV) TFC/q | Choose the correct answer from the options given below:

Which of the following are correct: (A) Average Product of labor = Total Product of labor / Labor. (B) Average cost = average variable cost + average fixed cost. (C) Marginal Product of labor = Total Product of labor/Labor. (D) Average fixed cost = Fixed cost / Output. Choose the correct answer from the options given below:

At the minimum point of the long run average cost curve .......... is observed.

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........

Average fixed cost curve is actually a ................... curve:

The marginal product of an input initially rises and then after a certain level of employment, it starts falling, thus MP curve looks like an inverse 'U'- shaped curve. This condition is under ............

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

Which of the following are correct about the short run cost concepts? (A) Both the average cost and average variable cost curves are U-shaped. (B) Average cost and average variable cost curves are parallel to each other. (C) Marginal cost is equal to both average cost and average variable costs at their respective minimum levels. (D) Average cost and average variable cost can never be equal to each other. Choose the correct answer from the options given below:

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

A profit-maximizing firm will attain its equilibrium at that level of output where?

A firm is operating in a market where it can sell more only by lowering the price of the good. Arrange the changes in total revenue of this firm in a sequential order. (A) Total revenue falls. (B) Total revenue starts from origin. (C) Total revenue increases at a diminishing rate. (D) Total revenue reaches its maximum. Choose the correct answer from the options given below:

According to the law of variable proportions. Which among the the following option is correct?

Suppose that the unit tax imposed by the government is Rs 50. Then, if the firm produces and sells 100 units of the good, the total tax that the firm must pay to the government is ...................

Select the correct statements from the following with regard to cost curves : (A) Short run marginal cost, average variable cost and short run average cost curves are 'U'-shaped. (B) SMC curve cuts the AVC curve from below at the minimum point of AVC. (C) SMC curve cuts the AFC curve from below at the minimum point of AFC. (D) Average fixed cost curve is downward sloping. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Normal profit | (I) Minimum level of profit need by firm to be in business. | | (B) Shut down point | (II) Minimum level of LRAC curve | | (C) Break-even point | (III) Profit Over and above normal profit | | (D) Super-normal profit | (IV) The point on which firm earn only normal profit. | Choose the correct answer from the options given below:

When more and more workers are applied on the fixed land then the marginal productivity of additional worker will ............... to the total output.

From the following statements about a firm's supply curve, select the correct statements: (A) Technological progress is expected to shift the supply curve of a firm to the right. (B) An increase in input prices is expected to shift the supply curve of a firm to the left. (C) A decrease in input prices is expected to shift the supply curve of a firm to the left. (D) The imposition of a unit tax shifts the supply curve of a firm to the left. Choose the correct answer from the options given below:

Which function tells us the relation between inputs and output?

Match List-I with List-II | List-I | List-II | |---|---| | (A) TVC | (I) AVC × quantity | | (B) SAC | (II) AVC + AFC | | (C) TC | (III) TVC + TFC | | (D) LRMC | (IV) (TC at q₁ units) – (TC at q₁ – ₁ units) | Choose the correct answer from the options given below:

Marginal product (MP) and the average product (AP) curves are inverse 'U'-shaped. which of the following is correct for AP and MP.

Given the production function $f(tx_1, tx_2) > tf (x_1, x_2)$, what it exhibit:

The total cost of a firm is Rs 80 for 3 units of output, Rs 95 for 4 units of output, and Rs. 115 for 5 units of output. What is the marginal cost for the 5th unit of output?

When more workers are hired, the land begins to get 'crowded'. Each worker now has insufficient land to work efficiently. So the output added by each additional worker is now proportionally less as a result the marginal product begins to __________.

The set of all possible combinations of the two inputs, labour and capital, that yield the same maximum possible level of output is called...........

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

In the long run, average cost must be rising as the firm increases output as long as the.......... operates.

In the short run and long run, the shapes of the cost curves for a typical firm are defined as (A). SMC curve cuts the AVC curve from below at its minimum point. (B). LRAC curve cuts the LRMC curve from below at the minimum point of LRMC. (C). SMC curve cuts the SAC curve from below at the minimum point of SAC. (D). Average fixed cost curve is downward sloping. Choose the correct answer from the options given below:

The change in output per unit of change in the input when all other inputs are held constant, is termed as __________.

In long run as long as average cost is falling, marginal cost must be less than the .......

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:

If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level:

For the firm to continue to produce, in the long run, price must be greater than the average cost (p > AC) and in the short run, price must be greater than the ......

Manoj is a seller in a market where more can be sold only by lowering the price of the goods. Which of the following will be true about his revenue. (A) Total revenue will increase at a constant rate. (B) Average revenue will be more than his marginal revenue at all the levels of output sold. (C) Marginal revenue curve will be downward sloping from left to the right. (D) Marginal revenue can be zero at some level of output sold. Choose the correct answer from the options given below:

Which of the following is/are true about the short run costs? (A) Marginal cost is the slope of total variable cost. (B) Average fixed cost curve is a downward sloping rectangular hyperbola. (C) Average variable cost curve is a U shaped curve. (D) Average variable cost curve and average cost curve are parallel to each other. Choose the correct answer from the options given below:

Which of the following is true about the law of variable proportions? (A) Total product eventually declines. (B) Average product is an inverse U shaped curve. (C) Marginal product becomes equal to Average product at its minimum. (D) Marginal product can never be negative. Choose the correct answer from the options given below:

If the supply curve of a good cuts the price axis in its positive range and as we extend the straight line, it cuts the quantity-axis at its negative range, the elasticity of supply for the good will be:

At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___

If the marginal rate of transformation is constant throughout, the production Possibilities Frontier will be

If the total revenue curve of a firm is an upward sloping straight line, then which of the following is true for this firm?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Land | (I) Interest | | (B) Labor | (II) Profit | | (C) Capital | (III) Wages | | (D) Entrepreneurship | (IV) Rent | Choose the correct answer from the options given below:

Which of the following is not true?

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. (C) Technological progress shifts the supply curve of the firm to the right. (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:

For a hypothetical firm, the total cost of producing 5 units of a commodity is Rs. 310 and that of producing 8 units is Rs. 850. If the firm has to spend Rs. 50 even when there is no output, what will be the marginal cost of producing the 8th unit?

If the marginal cost(MC) of a perfectly competitive firm is as given below and the price of the product is Rs 15, find the profit-maximizing output of the firm. | output | 1 | 2 | 3 | 4 | 5 | 6 | |---|---|---|---|---|---|---| | MC | 18 | 15 | 10 | 12 | 15 | 24 |

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:

Identify the correct sequence to establish the relation between marginal cost and average cost. (A) When Marginal cost falls, average cost also falls. (B) Marginal cost rises but average cost continues to fall. (C) Marginal cost is equal to average cost. (D) Marginal cost rises and average cost also rises. Choose the correct answer from the options given below:

Identify the incorrect statement about the relation between Marginal Product(MP) and Average Product (AP).

Identify the correct sequence for a firm operating in the short run. (A) Total product increases at a decreasing rate. (B) Marginal product becomes zero (C) Marginal product increases (D) More and more units of variable factor are employed. Choose the correct answer from the options given below:

Choose the correct options with reference to short-run average costs. (A) Average total cost = total cost / quantity of output (B) Average total cost = average variable cost + average fixed cost (C) Average variable cost = average total cost - average fixed cost (D) Average fixed cost = average variable cost - average cost Choose the correct answer from the options given below:

In an economy producing only two goods X and Y, the opportunity cost of producing 5 units of good X is 3 units of good Y. The above statement implies that _____. (choose the correct option)

Choose the incorrect option from the following with reference to production in the short run.

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.

Arrange the following in correct sequence to attain equilibrium under perfect competition. (A) LRMC start rising. (B) Both LRAC and LRMC fall. (C) Both LRAC and LRMC rises. (D) LRMC cuts LRAC from below.

Match List-I with List-II | List–I | List–II | | ---------------------------------------------------------------------------------------------------- | --------------------------------- | | (A) A proportional increase in all inputs results in an increase in output by a smaller proportion | (I) Constant returns to scale | | (B) A proportional increase in all inputs results in an increase in output by a larger proportion | (II) Law of variable proportions | | (C) A proportional increase in all inputs results in an increase in output by the same proportion | (III) Decreasing Returns to Scale | | (D) Factor proportions change as long as one factor is held constant and the other factors increases | (IV) Increasing Returns to Scale | Choose the correct answer from the options given below:

Match List-I with List-II | List–I | List–II | | ----------------------- | -------------------------------------- | | (A) Total variable cost | (I) TR – (TVC + TFC) | | (B) Total Revenue | (II) TVCₙ – TVCₙ₋₁ | | (C) Profit | (III) Average variable cost × Quantity | | (D) Marginal cost | (IV) Price × Quantity | Choose the correct answer from the options given below:

Which of the following statements are true with regard to the production? (A) In the short run, at least one of the factors of production remains fixed. (B) In the long run, all factors of production can be varied. (C) A period can be defined as long run or short run simply by looking at whether all the inputs can be varied or not. (D) In the long run, factors of production can be classified into fixed and variable

According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore looks like:

In given production function $q = f(x_1, x_2)$ what is depicted by $f(tx_1, tx_2) < tf(x_1, x_2)$.

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

The tendency where marginal productivity first increases then starts falling is known as ______

Change in total cost per unit of change in output is defined as: