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

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

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

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

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.