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1. Please use this google drive link to download the answer file.       

answer 1.https://drive.google.com/file/d/1fZINSyLYUI2Glky31IwELtMxZ8IvChge/view?usp=sharing

answer3  https://drive.google.com/file/d/1k7VZ3l9d6kbutAMKht5WuU7GdGs2sT8M/view?usp=sharing

Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process. 

https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link

Option C is correct answer as when the days of labour will be 4 sell from the output would be maximum. So firm should hire 4 days of labour.

2.1 )Marginal utility falls as consumption rises= Diminishing marginal utility

Law of diminishing marginal utility states that as we consume more and more units of a commodity the utility derived from each successive unit i.e Marginal utility keeps on decreasing.

2)Whatever the price , revenue is the same=Unit elasticity of demand

According to total expenditure approach of measuring elasticity of demand ,demand is unitary elastic if a fall or rise in price of a commodity doesn't lead to a change in total expenditure which is given by Price×Quantity.

3)Average costs are unchanged as output increases=Constant returns to scale

If the output increases in same proportion as that of change in input there is constant returns to scale. Here the average costs are unchanged as output increases.

4)Quantity demanded= Quantity supplied= Market equilibrium

Market equilibrium is derived at a point where quantity demanded of a commodity is equal to quantity supplied i.e there is no shortage or surplus.

5 )The product of price and quantity= Revenue

Total revenue refers to the total amount received from the sale of a given quantity of a commodity and is given by Price * Quantity.\

3. full explain answers: 

a) At a price of 10, there is demand of 55 units while supply of 40 units which result in shortage of 55 - 40 = 15 units.

b) At a price of 10, net quantity traded is 40. When quantity traded is 40, maximum price consumer is willing to pay is 16.

c) At a price of 16, there is demand of 40 units while supply of 70 units which result in surplus of 70 - 40 = 30 units.

4.(a) Because 0<c₁,t<1, and the multiplier is 1/(1-c₁(1-t)), this implies that the size of the multiplier is greater than 1.

(b) As government expenditure falls by ΔG, output falls by ΔG(1/(1-c₁(1-t))) > ΔG. Thus output falls by more than the fall in the government expenditure.
(c) Firstly as government expenditure falls by 1 unit then demand and hence output falls by one unit. But as output falls by 1 unit this is same as 1unit fall in income and hence people reduce their consumption. This reduced consumption reduces demand which further leads to lower output and this process continues.