Match the items of the List-I with that of the List-II and suggest the correct code from the following: Codes:List-I List-II i. Cost function a. Kinked demand ii. Supply function b. Isoquants iii. Production function c. Engineering method iv. Oligopoly d. Factor prices
i-d, ii-c, iii-b, iv-a
Concept: Each economic concept in List-I has a standard analytical tool or determinant it is most closely associated with, and the task is to pair each with that term in List-II.
The cost function relates cost to output and, when built up from the technical input-output data of a process, is estimated by the engineering method, so i matches c. For instance, a plant's cost curve can be derived from engineering data on how much steel, power and labour a process technically requires.
The supply function of a firm depends on the prices of the factors of production it uses, since factor prices determine cost and hence how much the firm will supply at each price, so ii matches d.
The production function, showing the combinations of inputs that yield a given output, is represented graphically by isoquants (equal-product curves), so iii matches b.
Oligopoly, a market of a few interdependent firms, is analysed through the kinked demand curve that explains price rigidity, so iv matches a.
Option check: Only the code i-d, ii-c, iii-b, iv-a preserves all four of these correct links; the other codes each break at least one pairing (for example, tying the production function to the kinked demand curve or oligopoly to isoquants).
Hence the correct match is i-d, ii-c, iii-b, iv-a.
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