Question 21
When average product APL is at a maximum, then marginal product is equal to average product
TRUE
FALSE
Question 21: When average product APL is at a maximum, then marginal …
Show answer
Correct answer
TRUE
Question 21 of 21 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 13 Jul 2025, in the May 2025 term (IIT M DEGREE AN EXAM QDB2 13 July 2025). It carries 1 mark.
More questions from this paper
- Your explicit costs include
- Your implicit cost will be
- Last week you purchased five large cases of Fritos for a customer who, as it turned out, did not accept delivery. You p…
- Last week you purchased five large cases of Fritos for a customer who, as it turned out, did not accept delivery. You p…
- Choose the correct alternative
- Choose the incorrect alternative
- Based on the above data, answer the given subquestions.
- What is the cost-minimizing input combination if the firm wants to produce 1,000 units per year? L^()= _
- What is the cost-minimizing input combination if the firm wants to produce 1,000 units per year? K^()=
- What will be the average fixed cost if company produces 50 units
- What is marginal cost of company at q=50? _
- What is average variable cost at q=50? _
- Marginal Product of Labour MPL is
- Marginal Product of Capital MPK is
- Find the optimal input combination given that the firm wishes to produce 200 units of output. L^()= _
- Find the optimal input combination given that the firm wishes to produce 200 units of output. K^()=
- Total cost of production for 200 units of output will be (in \$) _
- The Cobb-Douglas production function F(K,L)=K^(p)L^(q)
- When average product is decreasing in labor, marginal product is greater than average product.
- When average product is increasing in labor, marginal product is less than average product.