BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

SECOND SEMESTER 2018-2019

Tutorial Test 3 A
Course No. : ECON F211 Max. Marks : 24
Course Title : Principles of Economics Duration : 30 mints
Date : 23/02/2019 Weightage : 6%
Q1. A Company’s short run production schedule is given in the following table. Calculate the marginal productivity
of labor and average productivity of labor by filling the blank space in the respective column. (Note:
overwritten/ambiguous answers will NOT be evaluated.) [9 marks]
Capital (K) Labor(L) Total Product or Q APL MPL
2 1 5 5 5

2 2 18 9 13
3/2/1
2 3 36 12 18 +
2 4 56 14 20
3/2/1
2 5 75 15 19
marks
2 6 90 15 15

2 7 98 14 8

2 8 104 13 6

2 9 108 12 4

2 10 110 11 2

2 11 110 10 0

With reference to the above table, the number of L = 4 and corresponding output (Q) = __ 56__ at which
the stage II of production starts.
3 / 2 / 0 marks
Q2. The short run total cost function of the firm is given as: TC = 60 +2q – 0.2q2 + 0.01q3.
(NOTE: Show all the necessary calculations on the other side of the page, overwritten/ambiguous answers will
NOT be evaluated.). And write your final answer below. [5 x 3 marks]
a) Value of TVC at q = 20 is 40__ 3 / 0 marks

b) Value of AFC at q = 20 is 3__ 3 / 0 marks

c) Value of MC at q = 20 is 6 __ 3 / 1 /0 marks

d) Value of AVC at q = 20 is 2__

3 / 0 marks

3 / 0 marks
e) Value of ATC at q = 20 is 5 __
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BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI
SECOND SEMESTER 2018-2019
Tutorial Test 3 B
Course No. : ECON F211 Max. Marks : 24
Course Title : Principles of Economics Duration : 30 mints
Date : 23/02/2019 Weightage : 6%
Q1. A Company’s short run production schedule is given in the following table. Calculate the marginal productivity
of labor and average productivity of labor by filling the blank space in the respective column. (Note:
overwritten/ambiguous answers will NOT be evaluated.) [9 marks]
Capital (K) Labor(L) Total Product or Q APL MPL
20 1 5 5 -

20 2 16 8 11

20 3 30 10 14

20 4 57 14.25 27
3/2/1
20 5 85 17 28

20 6 114 19 29 +
20 7 140 20 26 3/2/1
20 8 160 20 20
marks
20 9 171 19 11

20 10 180 18 9

20 11 180 16.36 0

With reference to the above table, the number of L = _6__ and corresponding output (Q) = _114___ at
which the stage II of production starts.
3 / 2 / 0 marks
Q2. The short run total cost function of the firm is given as: TC = 0.01q3 – 0.2q2 + 2q + 100.
(NOTE: Show all the necessary calculations on the other side of the page, overwritten/ambiguous answers will
NOT be evaluated.). And write your final answer below. [5 x 3 marks]
a) Value of TVC at q = 30 is _150____
3 / 0 marks
b) Value of AFC at q = 30 is _3.33____
3 / 0 marks
c) Value of MC at q = 30 is 17____
3 / 1 /0 marks
d) Value of AVC at q = 30 is _ 5______
3 / 0 marks
e) Value of ATC at q = 30 is ___8.33___
3 / 0 marks