Question 1. Explain the concept of a production function. [CBSE 2004C, 07, 09C; AI 05, 08, 11] [1 Mark] Question 2. What is the total product of an input? [ 1 Mark] Question 3. What is the average product of an input? [AI 2013,Q] [1 Mark] Question 4. ‘What is the marginal product of an input? [AI 2005, 13C; 07; CBSE 2005, 06, 06C] [1 Mark] Question 5. Explain the relationship between the marginal products and the total product of an input. Question 6. Explain the concepts of the short run and the long run. [3-4 Marks] Question 7. What is the law of diminishing marginal product? [I Mark] Question 8. What is the law of variable proportions? Question 9. The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour. [3-4 Marks] Question 10. The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment. [3-4 Marks] Answer: Question 11. The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the
total and average product schedules of labour. [3-4 Marks] Answer: Question 12. Let the production function of a firm be \(Q={ L }^{ 1/2 }{ K }^{ 1/2 }\) Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K. [3-4 Marks] MORE QUESTIONS SOLVEDI. Very Short Answer Type Questions (1 Mark) Question 2. In which run some factors of
production are fixed and others are variable? Question 3. What change will take place in marginal product when total product increases at a diminishing rate? [CBSE Sample Paper 2010] Question 4. In which phase of Law of Variable Proportions a rational firm aims to operate? Question 5. What is meant by diminishing returns to a factor? Question 6. What is the general shape of the AP and MP curves? Question 7. How does fall in marginal production affect total output?
Question 8. Why MP curve cuts
AP curve at its maximum point? Question 9. Can AP rise when MP starts declining? Question 10. What is the shape of AP and MP? Question 11. Give meaning of “Return to a Factor”. [CBSE 2013Q] II. Multiple Choice Questions (1 Mark) Question 2. Diminishing marginal returns implies: Question 3. The short run, as economists use the phrase, is characterized by: Question
4. The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except: Question 5. To economists, the main difference between short run and long run is that: Question 6. Which one of the following statements is the best definition of production function? Question 7. Diminishing returns occur: Question 8. If the marginal product of labour is below the
average product of labour, it must be true that: Question 9. The average product of labour is maximized when marginal product of labour: Question 10. The law of variable proportions is drawn under all of the assumptions mentioned below except the assumption that: Question 11. Average product is defined as: Question 12. The change in the total product resulting from a change in a variable input is: Question 13. Marginal product, mathematically, is the slope of the Question 14. Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence: III. Short Answer Type Questions (3-4 Marks) Question 2. Differentiate between Short Period production and Long Period production function. Question 3. Explain the relationship between Marginal product and Average Product. Or [CBSE 2012 C]
Question 4. Explain the relationship between Total Product and Average Product.
Question 5. Explain the relationship between Total Product,
Average Product and Marginal Product.
Question 6. What is the reaction of AP, when:
Answer: The reaction of AP in different cases will be:
Question 7. What is the behaviour of TP, when
Answer: The behaviour of TP in different cases will be:
Question 8 . Complete the following table. Answer: Question 9. Complete the following table. Answer: Question 10. Complete the following table: [CBSE 2013] Answer: Question 11. What does the Law of variable proportions show? State the behaviour of Total product according to this Law. [CBSE 2012]
Question 12. Complete the following table: [CBSE Sample Paper 2016] Answer: IV. True Or False Question 2. When the quantity of a variable input is increased from 4 to 6 units, the total output increases from 85 units to 105 units. The marginal product of the variable input is 20 units. Question 3. When the marginal product of a variable input falls, total product also falls. Question 4. When there are diminishing returns to a factor, total product always decreases. [CBSE 2009] Question 5. Total product will increase only when marginal product increases. [CBSE 2009] Question 6. Increase in total product always indicates that there are increasing returns to a factor. [CBSE 2009] Question 7. When there are diminishing returns to a factor, marginal and total product both always fall. [CBSE 2009] Question 8. When there are diminishing returns to a factor, total product first increases and then
starts falling. [AI 2009, 010] Question 9. Total product always increases whether there is increasing returns or diminishing returns to a factor. [ CBSE, AI 2010] Question 10. If marginal product rises, average product must also rise. Question 11. If marginal product falls, average product must also fall. [CBSE 2010] Question 12. If marginal product becomes negative, average product must also become negative. Question 13.
Average product will increase only when marginal product increases. Question 14. Under diminishing returns to a factor, total product continues to increase till marginal product reaches zero. [AI 2013] V. Long Answer Type Questions (6 Marks)
Causes or Reasons of this Behaviour is as Under:
VI. Higher Order Thinking Skills Question 2. Explain the differences between variable factors and fixed factors. [3-4 Marks] Question 3. Explain how is it possible for marginal product to fall while average
product is rising? [1 Mark] Question 4. Assume the marginal product for a particular good is constant. Describe the shape of the total product function that would accompany it. [1 Mark] Question 5. Comment on the following statement: “When average product and marginal product are equal, marginal product is at its maximum.” [1 Mark] Question 6. Comment on the following statement: “Diminishing returns occur when total output falls as additional units of labour are combined with
fixed inputs in the production process.” [I Mark] VII. Value Based Questions Question 2. How can the productivity of Human resources be increased? [1 Mark] Question 3. Availability
of agricultural land (fixed factor) is limited in the world, but demand of food grain is continuously increasing. Is it possible to increase the supply of food grains by continuously increasing variable factors like seeds, fertilizers etc.? [1 Mark] Question 4. Though the contribution of plastic industry in GDP is more, yet why is it not considered an Index of social welfare? [ 1 Mark] Question 5. Which one of the following will be treated as labour in economics? Give a reason for each.
Answer: (1) and (2) do not generate any income. Value: Critical thinking Question 6. What efforts should be made in an economy for the continuous use of exhaustible natural resources in production? [3-4 Marks]
Value: Environmental conservation VIII. Application Based Questions Does the production function in the above table exhibit diminishing marginal returns? Explain. [3 Marks] Answer: No, the production function does not exhibit diminishing marginal returns. As the amount of labour hired increases, the marginal product of labour is constant. This violates the law of diminishing marginal returns. Question 2. Give reasons for the following statements:
Answer:
Question 3. If the total product curve is a straight line through the origin, what would be the shape of the average product and marginal product curves look like? [3-4 Marks] NCERT SolutionsAccountancyBusiness StudiesMicro EconomicsCommerce What is the change in total product resulting from a change in variable input is?Marginal product is defined as the change in total product due to a change in variable input as in the short run, fixed costs do not change with the level of production.
Is the change in the total product as a result of changing the variable factor of production by one unit?Marginal product refers to the change in production level or additional production which a firm produces for a unit change in the quantity of variable factor. It is the change in total production of the firm.
What is the marginal product of a variable input?The marginal product for any value of the variable input is the slope of the total product function at that point. In particular, if the total product function is differentiable, the marginal product is the derivative of the total product function.
When a change is made in the level of production the resulting change in the total cost is known as?In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
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