Practice Average Product (3.3.2) - Production and Costs - CBSE 12 Introductory Microeconomics

Practice: Average Product

Lesson 3.3.2Production and Costs

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8 questions

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6 sample questions

Question 1.
What is the formula for Average Product?
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AP stands for Average Product, think how it relates to total output.
Question 2.
If a company produces 60 units of output with 6 inputs, what is the Average Product?
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Use the formula: AP = TP divided by number of inputs.
3Question 3.
What is Average Product?
- Total output divided by the number of inputs
- Total inputs divided by output
- Total selling price per unit
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Think about how we measure efficiency in production.
4Question 4.
True or False: Average Product can decrease when Marginal Product is greater than Average Product.
- True
- False
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Recall the relationship between MP and AP.
Question 5.
A factory produces 500 units of goods with 20 workers. Suddenly, they add 5 more workers and output grows to 600 units. Calculate the Average Product pre and post staffing change.
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Apply AP formula before and after change.
Question 6.
Explain the implications for a firm that sees a rising Average Product and declining Marginal Product. What could this indicate about efficiency?
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Think about balance between efficiency and diminishing returns.

4 more questions in this section. Enroll free to practise them all.