Relationship between the Short Run Average and Marginal Cost Curves
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A firm is able to sell any quantity of a good at a given price
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How Do I Calculate Marginal Product?
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Q. The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except____________________________.
- When total product is rising, average and marginal product may be either rising or falling.
- When marginal product is negative, total product and average product are falling.
- When average product is at maximum, marginal product equals average product, and total product is rising.
- When marginal product is at maximum, average product equals marginal product, and total product is rising.
Q. Total fixed cost curve is?
- Vertical
- Horizontal
- Positively Sloping
- Negatively sloping
Q. The law of diminishing return is based on the assumption that:
- The proportions between factors are fixed.
- It is applicable only in the short run.
- The techniques of production remain constant.
- Both (A) and (B)
Q. Average Fixed Cost
I. never becomes zero
II. never touches y-axis
III. never touches x-axis
I. never becomes zero
II. never touches y-axis
III. never touches x-axis
- All are correct
- I and II are correct
- II and III are correct
- I and III are correct
Q.
When TU is increasing at a diminishing rate, MU must be _______.
- negative
- increasing
- decreasing
- constant
Q. Which of the following cost curves is never U-shaped?
- Total cost curve
- Marginal cost curve
- Average variable cost curve
- Total fixed cost curve
Q. What is the meaning of corresponding in SAS congruence criterion
Q. Marginal cost includes both fixed cost and variable cost. Comment.
Q. The law of diminishing returns operates when _______________.
- the factors have been combined in wrong proportions
- the factors have been combined in right proportions
- there is scientific cultivation
- are used fully indivisible factors
Q. If a, b, c, d and p are different real numbers such that:
(a2 + b2 + c2) p2 − 2 (ab + bc + cd) p + (b2 + c2 + d2) ≤ 0, then show that a, b, c and d are in G.P.
(a2 + b2 + c2) p2 − 2 (ab + bc + cd) p + (b2 + c2 + d2) ≤ 0, then show that a, b, c and d are in G.P.
Q. _______ is the addition made to the total cost by production of an additional unit of output.
- Fixed cost
- Marginal cost
- Variable cost
- Average cost
Q. In ∆ABC, prove that:
(i)
(ii)
(i)
(ii)