1. 11th Worksheet (Microeconomics) Chapter-: Production functions & returns to a factor
Write True or False with reason-:
1. Production function is only a technical relationship between physical inputs and
physical output.
2. In short period, production is done only by using the variable factors.
3. It is because of the law of variable proportions that MP curve makes an inverted-U.
4. When MP is declining, TP must also decline.
5. TP must rise as more and more units of a variable factor are combined with the
fixed factor.
6. MP is the rate of TP.
7. Diminishing returns to a factor always lead to fall in total product.
8. Increase in total product always follows the increase in marginal product.
9. Initially TP increases but ultimately falls when there are diminishing returns to a
factor.
10. Total product must increase no matter there are increasing or diminishing returns
to a factor.
HOTS & Evaluations-:
1. What is the relevance of stages (phases) of production to the producer?
2. When law of diminishing returns is a universal law, why is AP found to be much
higher in developed countries like US than the less developed countries like India?
Give two reasons.
3. Explain the relationship between MP and TP.
4. Explain the concepts of the short run and long run.
5. What is the law of diminishing MP?
Essential Practicals-:
1. The following table gives TP schedule of labour. Find the corresponding AP and MP
schedules of labours.
L 0 1 2 3 4 5
TP (L) 0 15 35 50 40 48
2. The following table gives the AP schedule of labour. Find the TP and MP
SCHEDULES. It is given that the TP is zero at zero level of labour employment.
L 1 2 3 4 5 6
AP(L) 2 3 4 4.25 4 3.5
