Question
Explain the relationship between Total Product, Average Product.
✓
Answer
- When Total Product increases at an increasing rate, Average Product also increases.
- When Total Product increases at a diminishing rate, Average Product declines.
- Since Total Product is always positive, Average Product also remains throughout positive.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
The Price Elasticity of Demand for a good is (-) 0.4. If its price increases by 5%, by what percentage will its demand fall? Calculate.
A consumer has ₹ 40 and both goods X and Y are priced at ₹ 20 and are available in integer units. (a) Give the bundles that this consumer can afford (b) give the bundles that cost exactly ₹ 40.
What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities Curve of the economy and why?
When price of a good is ₹ 7 per unit a consumer buys 12 units. When price falls to ₹ 6 per unit he spends ₹ 72 on the good. Calculate price elasticity of demand by using the percentage method. Comment on the likely shape of demand curve based on this measure of elasticity.
Explain the effect of technical progress on the supply of a good.
“Total Utility remains the same, whether Marginal Utility is positive or negative”. Defend or refute.
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
When does a production function satisfy decreasing returns to scale?
Define variable costs. Explain the behaviour of total variable cost as output increases.
Explain the implications of the feature 'large number of buyers' in a perfectly competitive market.