Page 1 :
1. State whether following are true or false. Give reasons, a) Average Product falls when Marginal Product is less than Average Product., b) Marginal Product falls when Total Product is constant., c) Average Product Increases when Marginal Product Increases., d) Under diminishing return to factor, Marginal Product and Total Product, both falls., e) Total Product increases when Marginal Product Increases., f) Increase in Total Product indicates that there are increasing returns to, Factor, g) When Marginal Product Falls, Average Product will also Fall., h) In diminishing return to factor, Marginal Factor continues to fall and, reaches zero., ( 1 mark each), 2. Explain different types phases in Law of Variable Proportion. Support your, answer with schedule and diagram, , 6, , 3. Explain the relationship between Average Product and Marginal Product., , 4, , 4. Explain the relationship between Marginal Product and Total Product., , 4, , 5. Complete the Following table, , 4, , Units of Labour, 1, 2, 3, 4, 5, 6, , Average Product, 16, 20, , Marginal Product, 20, , 18, 8, 14, , 6. Explain the Law of Variable Proportion and give reasons for each phase., , 4