Question
State the relation between marginal product and average product. Show this relation in a diagram.
✓
Answer
When MP > AP, AP rises i.e. between O and M.
When MP = AP, AP is constant i.e. at M.
When MP < AP, AP falls i.e. after M.
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 of commodity is ₹15 per unit and its quantity demanded is 500 units. Its quantity demanded rises by 80 units as a result of fall in its price by 20 percent. Calculate its price elasticity of demand. Is its demand inelastic? Give reason for your answer.
A producer supplies 80 units of a good at a price of Rs. 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs. 9 per unit?
Complete the following table:
| Output (Units) |
Average Revenue (Rs.) |
Marginal Revenue (Rs.) |
Total Revenue (Rs.) |
| 1 | - | 15 | - |
| 2 | - | - | 26 |
| 3 | 11 | - | - |
| 4 | - | 3 | - |
A consumer consumes only two goods $A$ and $B$ and is in equilibrium. Show that when price of good $B$ falls, demand for $B$ rises. Answer this question with the help of utility analysis.
→Explain the implications of the following features of monopolistic competition.
- Product differentiation.
- Free entry or exit of firms.
What does the Law of Variable Proportions show? State the behaviour of marginal product according to this law.
Complete the following table.
| Output (Units) | 1 | 2 | 3 | 4 |
| AR(₹) | - | - | 11 | - |
| MR (₹) | 15 | - | - | 3 |
| TR (₹) | - | 26 | - | - |
PED of X is known to be thrice that of Y. If price of the commodity X increases by 20% and price of the commodity Y decreases by 40%, calculate percentage change in demand in both the cases.
Price elasticity of supply of a good is 2. A producer supplies 100 units of a good at a price of Rs. 20 per unit. At what price will he supply 80 units.
How the efficiency may increase if two firms merge?