Q6 of 30 Page 1

State the behaviour of Marginal Physical Product, under Returns to a Factor.

the behaviour of marginal physical product has three phases as:

a. when marginal factor increases there is an increase in returns to a factor.


b. When marginal product decreases, returns to factor also decreases.


c. When MP turns negative returns to factor also becomes negative.


More from this chapter

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4

If a firm’s production department data says that the total variable cost for producing 8 units

and 10 units of output is 2,500 and 3,000 respectively, the marginal cost of the 10th unit will be


a. 100 b. 150 c. 500 d. 250

 5

State any one assumption for the construction of the curve that shows the possibilities of

potential production of two goods in an economy.

 7

Using appropriate schedules, briefly describe the determination of market equilibrium.

 8

“In a hypothetical market of mobile phones, the brand AWAAZ was leading the market

share. Its nearest competitor VAARTA suddenly changed its strategy by bringing in a new


model of the mobile phone at a relatively lesser price. In response, AWAAZ too slashed its


price.”


Based on the above information, identify the form of the market represented and discuss any one


a feature of the market.


Or


Discuss the primary reason for ‘indeterminateness of demand curve’ under the oligopoly form of market.