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

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.

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Match List-I with List-II

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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.

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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.

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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.

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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.

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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.

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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?

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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.

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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.

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Match List-I with List-II

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Match List-I with List-II

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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?