Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Identify the correct sequence for a firm operating in the short run.

(A) Total product increases at a decreasing rate.
(B) Marginal product becomes zero
(C) Marginal product increases
(D) More and more units of variable factor are employed.

Choose the correct answer from the options given below:

Options:

(D), (C), (B), (A)

(B), (C), (A), (D)

(D), (C), (A), (B)

(C), (B), (D), (A)

Correct Answer:

(D), (C), (A), (B)

Explanation:

The correct answer is Option (3) → (D), (C), (A), (B)

(D) More and more units of variable factor are employed — This happens first as the firm increases the use of a variable input (like labour).

(C) Marginal product increases — Initially, due to better utilization of fixed factors, the marginal product of the variable factor rises.

(A) Total product increases at a decreasing rate — After a point, marginal product starts declining, so total product still rises but at a diminishing rate.

(B) Marginal product becomes zero — Finally, when too many variable inputs are used, marginal product falls to zero (and can even become negative beyond this).