{"id":31667,"date":"2019-09-29T16:59:44","date_gmt":"2019-09-29T11:29:44","guid":{"rendered":"https:\/\/www.cbselabs.com\/?p=31667"},"modified":"2021-09-18T15:16:59","modified_gmt":"2021-09-18T09:46:59","slug":"ncert-solutions-class-12-micro-economics-production","status":"publish","type":"post","link":"https:\/\/www.cbselabs.com\/ncert-solutions-class-12-micro-economics-production\/","title":{"rendered":"NCERT Solutions for Class 12 Micro Economics Production"},"content":{"rendered":"
Question 1. Explain the concept of a production function. [CBSE 2004C, 07, 09C; AI 05, 08, 11] [1 Mark]<\/strong> Question 2. What is the total product of an input? [ 1 Mark]<\/strong> Question 3. What is the average product of an input? [AI 2013,Q] [1 Mark]<\/strong> Question 4. ‘What is the marginal product of an input? \u00a0[AI 2005, 13C; 07; CBSE 2005, 06, 06C] [1 Mark]<\/strong> Question 5. Explain the relationship between the marginal products and the total product of an input.<\/strong> Question 6. Explain the concepts of the short run and the long run. [3-4 Marks]<\/strong> Question 7. What is the law of diminishing marginal product? [I Mark]<\/strong> Question 8. What is the law of variable proportions?<\/strong> Question 9. The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour. [3-4 Marks]<\/strong> Question 10. The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment. [3-4 Marks]<\/strong> Question 11. The following table gives the marginal product schedule of labour. It is also given that total product of labour is zero at zero level of employment. Calculate the total and average product schedules of labour. [3-4 Marks]<\/strong> Question 12. Let the production function of a firm be \\(Q={ L }^{ 1\/2 }{ K }^{ 1\/2 }\\) Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K. [3-4 Marks]<\/strong> I. Very Short Answer Type Questions (1 Mark)<\/strong><\/span> Question 2. In which run some factors of production are fixed and others are variable?<\/strong> Question 3. What change will take place in marginal product when total product increases at a diminishing rate? [CBSE Sample Paper 2010]<\/strong> Question 4. In which phase of Law of Variable Proportions a rational firm aims to operate?<\/strong> Question 5. What is meant by diminishing returns to a factor?<\/strong> Question 6. What is the general shape of the AP and MP curves?<\/strong> Question 7. How does fall in marginal production affect total output?<\/strong> Question 8. Why MP curve cuts AP curve at its maximum point?<\/strong> Question 9. Can AP rise when MP starts declining?<\/strong> Question 10. What is the shape of AP and MP?<\/strong> Question 11. Give meaning of \u201cReturn to a Factor\u201d. [CBSE 2013Q]<\/strong> II. Multiple Choice Questions (1 Mark)<\/strong><\/span> Question 2. Diminishing marginal returns implies:<\/strong> Question 3. The short run, as economists use the phrase, is characterized by:<\/strong> Question 4. The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except:<\/strong> Question 5. To economists, the main difference between short run and long run is that:<\/strong> Question 6. Which one of the following statements is the best definition of production function?<\/strong> Question 7. Diminishing returns occur:<\/strong> Question 8. If the marginal product of labour is below the average product of labour, it must be true that:<\/strong> Question 9. The average product of labour is maximized when marginal product of labour:<\/strong> Question 10. The law of variable proportions is drawn under all of the assumptions mentioned below except the assumption that:<\/strong> Question 11. Average product is defined as:<\/strong> Question 12. The change in the total product resulting from a change in a variable input is:<\/strong> Question 13. Marginal product, mathematically, is the slope of the<\/strong> Question 14. Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:<\/strong> III. Short Answer Type Questions (3-4 Marks)<\/strong><\/span> <\/p>\n Question 2. Differentiate between Short Period production and Long Period production function.<\/strong> <\/p>\n Question 3. Explain the relationship between Marginal product and Average Product. Or [CBSE 2012 C]<\/strong> Question 4. Explain the relationship between Total Product and Average Product.<\/strong> Question 5. Explain the relationship between Total Product, Average Product and Marginal Product.<\/strong> Question 6. What is the reaction of AP, when:<\/strong><\/p>\n Answer:\u00a0<\/strong>The reaction of AP in different cases will be:<\/p>\n Question 7. What is the behaviour of TP, when<\/strong><\/p>\n Answer:<\/strong>\u00a0The behaviour of TP in different cases will be:<\/p>\n Question 8 . Complete the following table.<\/strong> Question 9. Complete the following table.<\/strong>
\n Answer:<\/strong>\u00a0The relationship between physical input and physical output of a firm is generally referred to as production function.
\nThe general form of production
\nfunction is, q = f (x1 : x2)
\nwhere, q = output, x1 = 1 input like labour, x2 = another input like machinery<\/p>\n
\n Answer:<\/strong>\u00a0Total product of an input refers to total volume of goods and services produced by a firm with the given inputs during a specified period of time.<\/p>\n
\n Answer:<\/strong>\u00a0Average Product of am input is per unit product of variable factors. It is calculated by dividing the total Product by the units of variable factor.
\nAverage Product =\\(\\frac { Total\\quad Product }{ Unit\\quad of\\quad Variable\\quad Factor } \\)<\/p>\n
\n Answer:<\/strong>\u00a0Marginal Product of an input is an addition to the total product when an additional unit of a variable factor is employed.
\n\\(MP=\\frac { Changeinoutput }{ Changeininput } =\\frac { \\Delta q }{ \\Delta L }\\)<\/p>\n
\n Or [AI 05, 07; CBSE 05, 06, 07] Explain the law of variable proportion with the help of total product and marginal product curves.<\/strong>
\n [CBSE 2010, 2013] Or<\/strong>
\n Explain the likely behaviour of Total Product and Marginal Product when for increasing production only one input is increased while all other inputs are kept constant.<\/strong>
\n [CBSE Sample Paper 2010] [6 Marks] Or<\/strong>
\n State the different phases of changes in Total Product and Marginal Product in the Law of Variable Proportions. Also show the same in a single diagram. [CBSE 2015]<\/strong>
\n Answer:<\/strong>\u00a0According to the Law of Variable Proportion when only one input is increased while all other inputs are kept constant, Marginal Product and Total Product behave in the following manner:<\/p>\n\n
\n<\/li>\n<\/ol>\n
\n Answer:<\/strong><\/p>\n\n
\n(a) A short run refers to the period of time in which a firm cannot change some of its factors like plant, machinery, building, etc. due to insufficiency of time but can change any variable factor like labour, raw material, etc.
\n(b) Thus, in short run, there will be some factors of production that are fixed at predetermined levels, e.g., a farmer may have fixed amount of land,<\/li>\n
\n(a) A long run is a time period during which a firm can change all its factors of production including machines, building, organization, etc.
\n(b) In other words, it is a period of time during which supplies can adjust itself to change in demand.
\nNote:<\/strong>
\n(i) Mind, here the terms long run and short run are functional and do not refer to a calendar month or a year,
\n(ii) This distinction depends merely upon how quickly factor inputs can be change by producers in an industry.<\/li>\n<\/ol>\n
\n Answer:<\/strong>\u00a0The Law of diminishing marginal product states that when we applied more and more units of variable factor to a given quantity of fixed factor, total product increases at a diminishing rate and marginal product falls.<\/p>\n
\n Or<\/strong>
\n Define the law of variable proportion. [CBSE 2004, 06[[1 Mark]<\/strong>
\n Answer:\u00a0<\/strong>The law of variable proportion states that as we increase the quantity of only one input, keeping other inputs fixed, the total product increases at an increasing rate in the beginning, then increases at decreasing rate and after a level the output ultimately falls.<\/p>\n
\n
\nAnswer:<\/strong>
\n<\/p>\n
\n
\nAnswer:<\/strong>
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\nAnswer:<\/strong>
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\n Answer:<\/strong>\u00a0\\(Q=5{ L }^{ 1\/2 }{ K }^{ 1\/2 }(Given)\\\\ Q=5\\times { 100 }^{ 1\/2 }\\times { 100 }^{ 1\/2 }\\)
\nQ = 5 x 10 x 10 = 500 units So, the maximum possible output(Q) = 500 units.<\/p>\nMORE QUESTIONS SOLVED<\/strong><\/span><\/h3>\n
\nQuestion 1. Give the meaning of production function. [CBSE 2007, AI 2011] Or<\/strong>
\n Define production function. [CBSE Sample Paper 2008]<\/strong>
\n Answer:<\/strong>\u00a0The relationship between physical input and physical output of a firm is generally referred to as production function.<\/p>\n
\n Answer:\u00a0<\/strong>\u00a0Short run.<\/p>\n
\n Answer:\u00a0<\/strong>Marginal product will decline but remains positive.<\/p>\n
\n Answer:<\/strong>\u00a0Diminishing returns to a factor (Phase 2).<\/p>\n
\n Answer:<\/strong>\u00a0Diminishing returns to a factor refer to a phase when total product increases at a decreasing rate and marginal product falls, but remains positive with the increase in variable factor.<\/p>\n
\n Answer:\u00a0<\/strong>\u00a0AP and MP curves are inversely U-shaped.<\/p>\n
\n Answer:\u00a0<\/strong>Fall in marginal product affects the total output in the following two manners:<\/p>\n\n
\n Answer:<\/strong>\u00a0It happens because when AP rises, MP is more than AP. When AP falls, MP is less than AP. So, it is only when AP is constant and at its maximum point that MP is equal to AP. Therefore, MP curve cuts AP curve at its maximum point.<\/p>\n
\n Answer:\u00a0<\/strong>Yes, AP can rise when MP starts declining. It can happen as long as falling MP is more than AP. However, when MP becomes equal to AP, further decline in MP will also reduce AP.<\/p>\n
\n Answer:<\/strong>\u00a0Inverse U-Shaped.<\/p>\n
\n Answer:<\/strong>\u00a0Return to a factor states that change in the physical output of a good when only the quantity of one input is increased, while that of other input is kept constant.<\/p>\n
\nQuestion 1. The marginal product of a variable input is best described as:<\/strong>
\n (a) Total product divided by the number of units of variable input.<\/strong>
\n (b) The additional output resulting from one unit increase in the variable input.<\/strong>
\n (c) The additional output resulting from one unit increase in both the variable and fixed inputs.<\/strong>
\n (d) The ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used.<\/strong>
\n Answer:\u00a0<\/strong>(b)<\/p>\n
\n (a) Decreasing average variable costs.<\/strong>
\n (b) Decreasing marginal costs.<\/strong>
\n (c) Increasing marginal costs.<\/strong>
\n (d) Decreasing average fixed costs.<\/strong>
\n Answer:\u00a0<\/strong>(c)<\/p>\n
\n (a) At least one fixed factor of production and firms neither leaving nor entering the industry.<\/strong>
\n (b) A period where the law of diminishing returns does not hold.<\/strong>
\n (c) No variable inputs that is all the factors of production are fixed.<\/strong>
\n (d) All inputs being variable.<\/strong>
\n Answer:\u00a0<\/strong>(a)<\/p>\n
\n (a) When total product is rising, average and marginal product may be either rising or falling.<\/strong>
\n (b) When marginal product is negative, total product and average product are falling.<\/strong>
\n (c) When average product is at its maximum, marginal product equals average product, and total product is rising.<\/strong>
\n (d) When marginal product is at a maximum, average product equals marginal product, and total product is rising.<\/strong>
\n Answer:\u00a0<\/strong>(d)<\/p>\n
\n (a) In short run all inputs are fixed, while in long run all inputs are variable.<\/strong>
\n (b) In short run the firm varies all of its inputs to find the least cost combination of inputs.<\/strong>
\n (c) In short run, at least one of the firm\u2019s input level is fixed.<\/strong>
\n (d) In long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.<\/strong>
\n Answer:\u00a0<\/strong>(c)<\/p>\n
\n (a) The relationship between market price and quantity supplied.<\/strong>
\n (b) The relationship between the firm\u2019s total revenue and the cost of production.<\/strong>
\n (c) The relationship between the quantities of inputs needed to produce a given level of output.<\/strong>
\n (d) The relationship between the quantity of inputs and the firm\u2019s marginal cost of production.<\/strong>
\n Answer:\u00a0<\/strong>(c)<\/p>\n
\n (a) When units of a variable input are added to a fixed input and total product falls.<\/strong>
\n (b) When units of a variable input are added to a fixed input and marginal product falls.<\/strong>
\n (c) When the size of the plant is increased in the long run.<\/strong>
\n (d) When the quantity of the fixed input, is increased and returns to the variable input falls.<\/strong>
\n Answer:\u00a0<\/strong>(b)<\/p>\n
\n (a) The marginal product of labour is negative.<\/strong>
\n (b) The marginal product of labour is zero.<\/strong>
\n (c) The average product of labour is falling.<\/strong>
\n (d) The average product of labour is negative.<\/strong>
\n Answer:\u00a0<\/strong>(c)<\/p>\n
\n (a) Equals the average product of labour.<\/strong>
\n (b) Equals zero.<\/strong>
\n (c) Is maximized.<\/strong>
\n (d) None of these.<\/strong>
\n Answer:\u00a0<\/strong>(a)<\/p>\n
\n (a) The technology is changing.<\/strong>
\n (b) There must be some inputs whose quantity is kept fixed.<\/strong>
\n (c) We consider only physical inputs and not economically profitability in monetary terms.<\/strong>
\n (d) The technology is given and stable.<\/strong>
\n Answer:\u00a0<\/strong>(a)<\/p>\n
\n (a) Total product divided by the total cost.<\/strong>
\n (fa) Total product divided by the marginal product.<\/strong>
\n (c) Total product divided by the variable input.<\/strong>
\n (d) Marginal product divided by the variable input.<\/strong>
\n Answer:\u00a0<\/strong>(c)<\/p>\n
\n (a) Average cost (b) Average product<\/strong>
\n (c) Marginal cost (d) Marginal product<\/strong>
\n Answer:\u00a0<\/strong>(d)<\/p>\n
\n (a) Total product curve<\/strong>
\n (b) Average product curve<\/strong>
\n (c) Marginal product curve<\/strong>
\n (d) Implicit product curve<\/strong>
\n Answer.<\/strong>(a)<\/p>\n
\n (a) 50, 50, 50, 50<\/strong>
\n (b) 50, 110, 180, 260<\/strong>
\n (c) 50, 100, 150, 200<\/strong>
\n (d) 50, 90, 120, 140<\/strong>
\n Answer:\u00a0<\/strong>(d)<\/p>\n
\nQuestion 1. Differentiate between Short Period and Long Period.<\/strong>
\n Answer:<\/strong><\/p>\n
\n Answer:<\/strong>
\n<\/p>\n
\n State the relation between Marginal product and average product. Use diagram. [AI 2013C]<\/strong>
\n Answer:<\/strong><\/p>\n\n
\n<\/li>\n<\/ol>\n
\n Answer:<\/strong><\/p>\n\n
\n Answer:<\/strong><\/p>\n\n
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\nAnswer:<\/strong>
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\nAnswer:<\/strong>
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