Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Output from Q = 5L + 2K with L = 0 and K = 12 | (I) | 35 |
| (B) | Output from Q = 2L2K2 with L = 0 and K = 12 | (II) | 24 |
| (C) | AVC at 4 units of output when TC = Rs 100 and TFC = Rs 40 | (III) | 0 |
| (D) | SMC of the 5th unit when TC rises from Rs 95 to Rs 130 | (IV) | 15 |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
When inputs are multiplied in a production function, one input at zero makes output zero. When they are added, the other input still gives output.
| List-I | List-II | Reason |
|---|---|---|
| (A) Output from Q = 5L + 2K with L = 0 and K = 12 | (II) 24 | Q = 5(0) + 2(12) = 24. |
| (B) Output from Q = 2L2K2 with L = 0 and K = 12 | (III) 0 | Q = 2 × 02 × 122 = 0. Both inputs are needed here. |
| (C) AVC at 4 units of output when TC = Rs 100 and TFC = Rs 40 | (IV) 15 | TVC = 100 − 40 = 60; AVC = 60 / 4 = 15. |
| (D) SMC of the 5th unit when TC rises from Rs 95 to Rs 130 | (I) 35 | SMC = change in TC = 130 − 95 = 35. |
NCERT (2026-27): “3.1 Production Function … In our example, both the inputs are necessary for the production. If any of the inputs becomes zero, there will be no production. With both inputs positive, output will be positive. As we increase the amount of any input, output increases.” “3.7.1 Short Run Costs We have previously discussed the short run and the long run. In the short run, some of the factors of production cannot be varied, and therefore, remain fixed. The cost that a firm incurs to employ these fixed inputs is called the total fixed cost (TFC). Whatever amount of output the firm produces, this cost remains fixed for the firm. To produce any required level of output, the firm, in the short run, can adjust only variable inputs. Accordingly, the cost that a firm incurs to employ these variable inputs is called the total variable cost (TVC). Adding the fixed and the variable costs, we get the total cost (TC) of a firm …” “3.7.1 Short Run Costs … The short run marginal cost (SMC) is defined as the change in total cost per unit of change in output …” |