Bihar Board Class 12 (Arts) Producer Behaviour and Supply — practice questions
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Practice Bihar Board Class 12 (Arts) Producer Behaviour and Supply in the app →What does a production function give for given inputs?A production function is defined for a given state of what?If technology improves, what happens to the production function?An isoquant is the set of all input combinations that yield what?Why are isoquants negatively sloped?In the short run, a factor that cannot be varied is called what?In the long run, how many factors of production are fixed?How is a period classified as the short run or the long run?The relationship between one variable input and output, other inputs constant, is called what?Average product of an input is defined as output per unit of what?Marginal product of an input is the change in output per unit change in the input when what is held constant?TP rises from 10 to 24 as labour goes from 1 to 2. Find MP of the 2nd worker.The sum of the marginal products of all preceding units of an input gives what?Average product at any level of employment equals the average of all what?What does the law of variable proportions say about MP?The law of diminishing marginal product is also called what?Factor proportions represent which ratio?Why does marginal product eventually fall as workers are added?What is the shape of the marginal product curve of an input?For the first unit of a variable input, how do marginal and average product compare?When average product is rising, marginal product must be what?Where does the MP curve cut the AP curve?Returns to scale arise when all inputs are changed in what manner?If doubling all inputs exactly doubles output, which returns to scale hold?All inputs rise 10% and output rises only 6%. What holds?Which case shows variable proportions, not returns to scale?For a Cobb-Douglas function with alpha plus beta equal to 1, which returns to scale hold?Cobb-Douglas exponents sum to less than 1. Which returns hold?The cost function gives what for each output level?Given input prices, which input mix will a firm choose?The cost of employing fixed inputs in the short run is called what?Which cost rises with output because the firm hires more variable inputs?Total cost in the short run equals what?A firm has total fixed cost of Rs 20 and total variable cost of Rs 18 at 2 units. What is total cost?At zero output in the short run, total cost equals what?Short run average cost is defined as total cost per unit of what?A firm with total cost Rs 120 produces 8 units. What is its average cost?Average variable cost is total variable cost divided by what?Short run average cost is the sum of which two costs?Total cost rises from Rs 38 to Rs 44 as output rises from 2 to 3 units. What is marginal cost of the third uniIn the short run, a change in total cost from extra output is entirely due to which cost?The sum of marginal costs up to a given output gives what?What is the shape of the total fixed cost curve on a cost-output plane?As output rises, what happens to average fixed cost?Total fixed cost is Rs 100 and output is 20 units. What is average fixed cost?Why is the short run marginal cost curve U-shaped?At the first unit of output, how do SMC and AVC compare?The SMC curve cuts the AVC curve at which point of AVC?The total variable cost at an output is given by the area under which curve?In a perfectly competitive market, how many buyers and sellers are there?What holds for entry and exit under perfect competition?What does perfect information imply for buyers and sellers?What is the most distinguishing behaviour of a firm under perfect competition?A price-taking firm sets its price above the market price. What happens?Total revenue of a price-taking firm is equal to what?The market price of a box of candles is Rs 10. What is total revenue from selling 7 boxes?What is the shape of the total revenue curve of a price-taking firm?For a price-taking firm, average revenue equals what?What is the horizontal line showing market price against firm output called?What is the price elasticity of demand facing a firm under perfect competition?Marginal revenue is the increase in total revenue for what change in output?Which relation holds for a perfectly competitive firm?Total revenue from 2 boxes is Rs 20 and from 3 boxes is Rs 30. What is marginal revenue of the third box?Profit is the difference between which two quantities?Total revenue is Rs 500 and total cost is Rs 420. What is profit?When MR exceeds MC, what happens to profit if output expands?For a perfectly competitive firm, profit is maximum where price equals what?The second condition for profit maximisation requires marginal cost to be what?In the short run, a firm continues to produce only if price is at least what?A firm with price below AVC in the short run produces zero output. What is its profit?A firm's supply is the quantity it chooses to sell at a given price, given technology and what else?A schedule of quantities a firm sells at various prices is called what?The short run supply curve of a firm is the rising part of which curve above minimum AVC?What is a firm's short run output when price is below minimum AVC?The short run shut down point lies at the minimum of which curve?The minimum profit needed to keep a firm in its existing business is called what?Profit earned over and above normal profit is called what?At the break-even point, a firm earns what?Opportunity cost of an activity is the gain forgone from what?Technological progress shifts a firm's supply curve in which direction?A rise in the wage rate shifts a firm's supply curve in which direction?A unit tax is a tax imposed per unit of what?A unit tax of Rs 2 is imposed and a firm sells 10 units. What total tax does it pay?What effect does a unit tax have on a firm's long run supply curve?How is the market supply curve obtained from individual firms' supply curves?At a price p, firm 1 supplies 30 units and firm 2 supplies 20 units. What is market supply?If the number of firms in a market increases, what happens to market supply?Price elasticity of supply measures the responsiveness of what to a change in price?Elasticity of supply is % change in quantity supplied divided by what?Price rises from Rs 10 to Rs 30 and quantity supplied rises from 200 to 1000. What is the elasticity of supplyWhat is the elasticity of supply when the supply curve is vertical?A straight-line supply curve passes through the origin. What is elasticity of supply at every point?A straight-line supply curve cuts the price axis at a positive value. What is its elasticity?