MAXFORT SCHOOL- ROHINI

ASSIGNMENT- Ch- PRODUCTION FUNCTION

PRODUCTION FUNCTION
1. Define marginal product.
2. What will be the behavior of total product when marginal product of variable input is falling but is
positive?
3. What is the relation between average and marginal product when average product is falling?
4. What do you mean by fixed factors of production? Give examples.
5. How does fall in total product affect marginal product?
6. Giving reasons, explain the behavior of total product under the law of variable proportions. Use
diagram.
7. Explain the Law of variable proportions with the help of total product and marginal product curves.
8. Define production function. Distinguish between short run and long run production function.
9. State the behavior of marginal product in the Law of variable proportions. Explain the causes of this
behavior.
10. State whether following statements are true or false:
1. When MP is declining, TP must also decline.
2. If AP is falling, MP must also fall.
3. MP is the rate of TP.
4. Total product always increases whether there is increasing returns or diminishing returns to a
factor.
5. Average product will increase only when marginal product increases.
11. Do you agree that an intelligent producer can avoid occurrence of diminishing returns to a factor even
with existing technology.
12. What is meant by increasing returns to a factor? What leads to increasing returns to a factor?