PLEASE ANSWER THE FOLLOWING QUESTIONS:

Q 1. The hiring of labour with fixed factor of production under short run after sometimes leads to increase in cost only. What's your opinion at what stage of production producer should make addition in labour, identify which concept in economics explains the whole situation, justify your answer why it happens with the help of table and diagrams.

Q 2. Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Do you think that average and marginal cost curves have the same general shape and why?

Q3. The quantity demanded or product X has increased by 10% in response to a 15% increase in price of product Y. Calculate the cross elasticity of demand and tell whether the product pair is (a) Voltas AC and Videocon AC or (b) Cars and Petrol and what you suggest for strategies the pricing policy.