CUET Economics: MicroProduction & Costs. Free, no login required.

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

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

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.

Choose the correct answer from the options given below:

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

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

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

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?