A firm is operating with a Total Variable Cost of 500 when 5 units of the given output are produced and the Total Fixed Costs are 200, what will be the Average Total Cost of producing 5 units of output?

i) 140

ii) 100

iii) 120

iv) 300

Which of the following is a statement of normative nature in economics?

a) Economics is the study of choices/alternatives.

b) The government should be concerned with how to reduce unemployment

c) According to an estimate, in spite of severe shortage, more than 10% of houses in Indian cities are lying vacant.

d) Accommodation of Refugees is posing a big problem for Europe

Define marginal physical product.

In an imperfectly competitive market, if the Total Revenue is maximum, Marginal Revenue will be _______________.

State and discuss any two factors that will shift the Production Possibility Frontier (PPF) to the right.

OR

Draft a hypothetical schedule for a straight line Production Possibility Curve.