Microeconomics UE Past Papers Questions.

Write very short notes on each of the following

1. Marginal Rate of Technical Substitution (MRTS)
2. Economic region of production
3. Returns to scale
4. Opportunity cost
5. Expansion path

Answer / Solution

UNSOLVED

If MUa and MUb stands for marginal utilities for apples and bananas whose prices are Pa and Pb respectively, then the necessary condition for consumer equilibrium is MUa/MUb =Pa/Pb

Answer / Solution

UNSOLVED

The necessary and sufficient conditions for constrained output maximization and for constrained profit maximization are the smae.

Answer / Solution

UNSOLVED

When applying the marginal principle, you should pick the level at which activity`s marginal benefit equals its marginal cost.

Answer / Solution

UNSOLVED

According to the principle of diminishing returns, an additional worker decrease total output.

Answer / Solution

UNSOLVED