What is the average product of an input?
Average product is defined as the output produced by per unit of variable factor (labour) employed. Algebraically, it is defined as the ratio of the total product by units of labour employed to produce the output, i.e. AP =
Where,
TP = Total Product
L = units of labour employed
The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.
Quantity Sold | TR (Rs.) | TC (Rs.) | Profit |
---|---|---|---|
0 1 2 3 4 5 6 7 |
0 5 10 15 20 25 30 35 |
5 7 10 12 15 23 33 40 |
There are three identical firms in a market. The following table shows the supply schedule of firm 1. Compute the market supply schedule.
Price (Rs.) | SS1 (units) |
---|---|
0 1 2 3 4 5 6 7 8 |
0 0 2 4 6 8 10 12 14 |
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Welcome to the NCERT Solutions for Class 12 Micro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 3: What is the average product of an input? ....
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