Micro PYQ — Page 5

________ of an input is defined as the change in output per unit of change in the input when all other inputs are remain constant.

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Analysis assumes that level of utility can be expressed in numbers. | (I) Cardinal Utility | | (B) Change in total utility due to consumption of one additional unit of a commodity | (II) Law of Diminishing Marginal Utility. | | (C) Marginal utility from consuming each additional unit of a commodity declines as its consumption increases. | (III) Marginal Utility | | (D) The amount of mangoes that the consumer has to forego in order to get an additional banana, her total utility level being the same. | (IV) Marginal rate of substitution | Choose the correct answer from the options given below:

In the short run, the shape of the average fixed cost curve for a typical firm is?

When the additional unit of input is 'crowded' in the production, the output is proportionally less and............

The relationship between an increase in variable input and output when all other inputs are held constant is referred to as.

The cost of a firm has increased from Rs. $67$ to Rs. $80$ when the units of cotton production rose from $8$ to $9$. Calculate the marginal cost of a firm?

An increase in production of one extra unit of output will lead to an increase in ..........

According to the law of variable proportions, the marginal product of an input initially rises and then after a certain level of employment, it starts falling. The MP curve therefore looks like:

Which among the following are the features of the indifference curve? (A) Indifference curve slopes downwards from left to right. (B) Higher indifference curve gives greater level of utility. (C) Indifference curve reflects negative utility. (D) Two indifference curves never intersect each other. Choose the correct answer from the options given below:

Set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as.........

The economic approach in which we try to understand whether given mechanisms are desirable or not is known as ..........

In the short run, which of the following condition is mandatory for a firm for its profit maximization at q₀?

In which condition, the average cost of a firm declines when output increases?

Identify the correct statements from the following: (A) As long as MP>AP, the average Product (AP) can rise even when the Marginal Product (MP) is falling. (B) The law of variable proportions operates only if the factor ratio happens to change. (C) Total Product (TP) must increase no matter if there are increasing or decreasing returns to a factor. (D) Marginal Product (MP) = Average Product (AP), when AP is maximum. Choose the correct answer from the options given below:

Arrange the following in correct sequence to attain equilibrium under perfect competition. (A) LRMC start rising. (B) Both LRAC and LRMC fall. (C) Both LRAC and LRMC rises. (D) LRMC cuts LRAC from below.

What causes an indifference curve to be convex to the origin? 1. Marginal utility 2. Market Rate of Exchange 3. Law of Diminishing Marginal Rate of Substitution 4. Law of Increasing Marginal Rate of Substitution

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms (A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market. (B) Some new firms will enter the market (C) At the prevailing market price, each firm is earning supernormal profit. (D) Demand remains unchanged but the market supply curve shifts rightward

Identify, where the point will lie in the production possibility frontier when the resources are either underemployed or are utilized in a wasteful manner 1. A point below the production possibility frontier 2. A point above the production possibility frontier 3. A point on the production possibility frontier 4. A point on or above the production possibility frontier

Match List-I with List-II | List–I | List–II | | ----------------------- | -------------------------------------- | | (A) Total variable cost | (I) TR – (TVC + TFC) | | (B) Total Revenue | (II) TVCₙ – TVCₙ₋₁ | | (C) Profit | (III) Average variable cost × Quantity | | (D) Marginal cost | (IV) Price × Quantity | Choose the correct answer from the options given below:

Suppose a consumer purchase 15 bananas when its price is Rs. 5 per banana. When the price increases to Rs. 7 per banana, consumer reduces his demand to 12 bananas. Price elasticity of demand would be........... 1. 0.5 2. 0.6 3. 0.4 4. 0.7

Which of the following statements are true with regard to the production? (A) In the short run, at least one of the factors of production remains fixed. (B) In the long run, all factors of production can be varied. (C) A period can be defined as long run or short run simply by looking at whether all the inputs can be varied or not. (D) In the long run, factors of production can be classified into fixed and variable

At the final level of production, a typical firm observed.

In the long run marginal cost curve shape is ..........