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

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

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

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.

Match List-I with List-II (TP : TOTAL PRODUCT; L: UNITS OF LABOUR)

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)