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Assignment on production function

The document consists of a series of questions related to production theory, including definitions of key concepts such as production function, marginal product, and average production. It also explores the relationships between total product, average product, and marginal product, as well as the conditions for producer's equilibrium. Additionally, it includes a table for completing data on variable inputs and their corresponding total, average, and marginal products.

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17 views

Assignment on production function

The document consists of a series of questions related to production theory, including definitions of key concepts such as production function, marginal product, and average production. It also explores the relationships between total product, average product, and marginal product, as well as the conditions for producer's equilibrium. Additionally, it includes a table for completing data on variable inputs and their corresponding total, average, and marginal products.

Uploaded by

dev
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ONE MARK QUESTIONS:

1. Define production function.


2. Define marginal product.
3. Define average production.
4. What will be the behavior of TPP when MPP is falling but
remains positive?
5. What will be the behavior of MPP when APP is falling?
6. What do you mean by fixed factors of production?
7. What do you mean by producer’s equilibrium?
8. State the conditions of producer’s equilibrium according to
MR and MC approach.
9. What do you mean by market period?

THREE/FOUR MARKS QUESTIONS:


1. Explain the relationship between TPP, APP and MPP.
2. Why does law of diminishing returns apply?
3. How does total product changes with the change in
marginal product.
4. Explain the causes behind increasing returns to factor.
5. Briefly explain the causes of diminishing returns to factor.
6. Explain the concept of producer’s equilibrium with the
help of numerical example, using marginal revenue and
marginal cost approach.
7. Complete the following table:
Variable TP AP MP
inputs
0 0 - -
1 - - 20
2 - - 26
3 66 - -
4 - 19 -
5 - - 4

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