Questions:
1. Can Marginal Product be Zero or negative?
2. What would be Marginal Cost if cost of producing 4 units is '50 and that of 5 units is '68?
3. Is the difference between ATC and AVC is constant? Give reason whether it's true or false.
4. What can be expressed OPQM in the following figure?
Revenue P Q AR MR O M
(a) AR (b) MR (c) TR (d) All of these
5. Explain the relationship between Average Product and Marginal Product using diagram.
6. Give reasons, state whether the following statements are true or false.
(a) Real GDP can be equal to nominal GDP.
(b) Savings are stock.
(c) Net capital gains from the sale of property are also a part of domestic factor income.
7. Explain with the help of a diagram and schedule the AC is the sum of AFC and AVC.
8. Complete the following table: -
|
(4) OUTPUT (Units)
|
AFC (')
|
MC(')
|
TC (')
|
|
1
|
-
|
-
|
-
|
|
2
|
-
|
20
|
164
|
|
3
|
40
|
16
|
-
|
|
4
|
-
|
-
|
198
|
|
5
|
24
|
20
|
-
|