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Question

During the first stage of a total product curve, the total product is ______

This question was previously asked in
SSC CGL 2020 (Tier-2) Statistics Previous Year Paper 3 (28-Jan-2022)
The correct answer is

Increasing

The correct answer is option 4. In the first stage of the total product curve, output increases with each additional unit of input due to increasing returns.

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Important Questions from Production Function

  1. Match the stages of production with their corresponding characteristics :
    (i) Stage-I(a) Total product declines, Marginal product is negative
    (ii) Stage-II(b) Total product increases at an increasing rate, marginal product positive
    (iii) Stage-III(c) Total product increases at a diminishing rate, marginal product is zero.
  2. Neo-classical production function has which of the following characteristics ?
    (a) Positive and diminishing marginal productivities of the factors
    (b) Constant returns to scale
    (c) Satisfies Inada conditions
    Choose the correct answer from the code below :
  3. Which one of the following is not an Hirofumi Ujawa condition for a well behaved production function ?
  4. Exponents of the Cobb-Douglas production represent :
  5. Given the production function $Q = 2 \cdot K^{1/3} \cdot L^{2/3}$, find the output level when 8 units of capital and 27 units of labour are used.
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