Question

Answer any two of the following questions:
a. State giving reasons whether the following statements are true or false.
i Average Product falls only when Marginal Product is less than Average Product.
is. When Total Product is constant, Average Product will fall.
ii. Average Product will increase only when Marginal Product increases.
b. Explain the relationship between marginal product and total product.
c. Show a shut-down point with the help of a diagram.
d. Explain the situation of zero elasticity of supply with the help of a diagram.​

Answer 1

Explanation:

Giving reasons state whether the following statements are true or false: i Average product will increase only when marginal product increases. ii With increase in level of output average fixed cost goes on falling till it reaches zero.

Average product will increase only when marginal product increases. (ii) With increase in level of output, average fixed cost goes on falling till it reaches zero.

Answer: Average Product of am input is per unit product of variable ... Answer: Marginal Product of an input is an addition to the total ... The following table gives the total product schedule of labour.