Production and CostsClass 12 Introductory Microeconomics Assertion & Reason Questions

Assertion (A): A production function represents the maximum output that can be produced from any given combination of inputs.

Reason (R): A production function only considers the efficient use of inputs, where it is not possible to get any more output from the same level of inputs.

Assertion (A): In the long run, there are no fixed factors of production.

Reason (R): The long run is defined as any time period longer than one calendar year.

Assertion (A): The law of variable proportions states that the marginal product of a factor input initially rises and then starts falling after reaching a certain level of employment.

Reason (R): As more of a variable input is added to a fixed input, the factor proportions initially become more suitable for production and then become too crowded.