CBSE Class 12 Economics Production And Cost Worksheet

PRODUCTION AND COST

I. Answer in one sentence each

1. Define production function.

2. What is an isoquant?

3. What can you say about MP when total product is constant?

4. The area under MC at a given point of output is:

a. Total Cost b. Total Variable Cost c. Total Fixed Cost

d. Average Total Cost

5. What can you say about Short Run Average cost when MC intersects and equal to that?

II. Answer in around 60 words each

6. How does short run cost analysis differ from long run cost analysis?

7. What are the causes behind the law of diminishing returns to a factor?

8. Calculate TP and MP for the following

Units of output:   1      2      3     4   5    6
Marginal Product: 6    10   14    10   6    2

9. Why is Long run Average Cost ‘U’ shaped? 3

10. What is the shape of AFC? Why is it so?

III. Answer in around 75 words each

11. With the help of a diagram explain the relation between AVC,MC and SAC

12. Using suitable diagram distinguish between TVC and TFC

13. Can the TFC influence the MC? Explain.

14. Distinguish between Total Cost and Total Variable Cost

15. Complete the following table

Output    Total Cost    Average Variable Cost       Marginal Cost
0                24
1                44              ----------                           -----
2                ------             15                                 -----
3               ------           -----------                          15
4                88              -----------                         ------

Answer in around 100 words each

16. Using a suitable diagram explain the relationship between TP and MP in its three stages of law of variable proportion

17. Distinguish between Short Run Production function and Long run production function using numerical illustration.

18. Following information is given about a firm

Output          0       1        2        3       4        5         6

Total costs   500    600    680    740    840    1000   1260

Find out:

i. Average variable cost of producing 5 units
ii. The average fixed cost of producing 4 units
iii. The least cost level of output
iv. Marginal cost when third unit is produced
v. Total variable cost of producing 6 units
vi. Average cost at 5th unit of output

Please click on below link to download CBSE Class 11 Economics Production And Cost Worksheet