## Class 12 NCERT Solutions Micro Economics - Production and Costs - Free PDF Download

## FAQs on NCERT Solutions for Class 12 Micro Chapter 3 - Production And Costs

1. Explain the Total Product, Average Product, and Marginal Product.

The relationship between the variable input and output, keeping all other inputs fixed, is known as the Total Product of the variable input. It is also known as the summation of the total output produced by a firm by the employment of a specific input.

The average product may be defined as output produced per unit of the variable input. It is the ratio of the total product (TP) to the total units of labour employed.

The marginal product of input may be defined as the change in output per unit of change in input, keeping all other input parameters constant.

2. Define the Law of Diminishing Marginal Product.

According to the law of diminishing marginal product, if the units of variable factor keep on increasing while keeping the level of fixed factor constant, then at initial stages the marginal product will rise but finally, a point will be attained after which the marginal product of the variable factor will gradually fall. After this point, the marginal product of any additional variable factor will be zero and can even be less than zero. The tendency of the marginal product to first increase and then fall is called the law of variable proportions or the law of diminishing marginal product.

3. What does production function mean?

The relationship between the physical inputs and other factors used during production and the final output is termed as the production function of a firm or company. It basically specifies the number of units of different inputs that are required to produce the maximum possible level of the final output. The equation used to show the production function is written as Qₓ = f (L, K). Students can find a detailed explanation of the equation in NCERT Solutions for Class 12 Micro Economics - Chapter 3. These solutions are available at free of cost on Vedantu website(vedantu.com) and mobile app as well.

4. Explain the types of production functions.

According to Chapter 3 in Class 12 Micro Economics, there are two types of production functions. These include:

**Short-run Production Function:**This type of production involves one factor of the production being variable while all others are fixed. The law of return to a factor is applied in this process.**Long-run Production Function:**All the factors in this type of production are variable. This involves the application of the law of returns to scale.

5. What is the marginal product of input?

The additional output produced due to the employment of an additional labour unit is defined as the Marginal product. It can also be defined in simpler terms as the change in the total output observed when an additional unit of labour is employed. For further explanation of the algebraic equation used to represent the marginal product of input, refer to NCERT Solutions for Class 12 Microeconomics - Chapter 3 - Production and Costs.

6. What are the stages of the Law of Diminishing Returns?

The law of diminishing returns has a total of three stages. The first stage involves increasing returns to the factor. In the second stage of diminishing return to factor, the optimal use of fixed factor and imperfect factor substitutability leads to diminishing returns. The third stage of negative returns to factors is usually a result of poor coordination between the fixed and variable factors and overutilization of fixed factors.

7. What are the topics covered in NCERT Solutions for Chapter 3 Class 12 Micro Economics?

The NCERT Solutions for Chapter 3 of Class 12 Micro Economics provided by subject experts at Vedantu cover the following topics:

Production Function

The Short and the Long Run

Total, Average, Marginal Product

The law of diminishing marginal product and law of variable proportions

Shapes of Total, Average, Marginal Product Curves

Returns to Scale

Costs

Students will be able to strengthen their ability to answer the questions based on these topics more accurately with the help of the NCERT Solutions for this chapter.