Use Table 3 to answer question.

What is the marginal product of the third hour of labour?

Use Table 3 to answer question.

What is the total output when 2 hours of labour are employed?

Suppose that a sole proprietorship is earning total revenues of Rs.120,000 and is incurring explicit costs of Rs 90,000. If the owner could work for another company for Rs.50,000 a year, we would conclude that:

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

We can say that gel pen in economics sense is a/an

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

Suppose income of the residents of locality increases by 50% and the quantity of gel pens demanded increases by 20%. What is income elasticity of demand for gel pen?

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

What can be said about the price elasticity of demand for pen?

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

The cross elasticity of monthly demand for ink pen when the price of gel pen increases from Rs. 10 to Rs. 15 is equal to:

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

The cross elasticity of monthly demand for refills when the price of gel pen increase from Rs. 10 to Rs.15 is equal to:

Read the following data and answer Question

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15 per pen. Following the price rise:
• Only 60 pens were sold every month.
• The number of refills bought went down from 200 to 150.
• The number of ink pen customers bought went up from 90 to 180 per month.

The price elasticity of demand when gel pen’s price increases from Rs. 10 per pen to Rs. 15 per pen is equal to: (use arc Elasticity Method)

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 100 per unit. Its fixed cost is Rs. 300 and its variable costs (in rupees) for different levels of production are shown in the following table. Use Table 2 to answer question.

If the market price drops from Rs 100 to Rs 56, the firm’s short run response should be