| 1 |
In law of diminishing returns at least one factor |
- A. must be constant
- B. must be owned by the firm
- C. must be purchasable
- D. must be efficient
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| 2 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
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| 3 |
Which of the following is example of external economies of scale? |
- A. Discount on purchases of raw materials
- B. Technical progress leads to development of machines at low price
- C. Hiring of specialized staff due to increase in scale of production
- D. A firm starts producing by products
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| 4 |
The production function relates to |
- A. cost of output
- B. cost of input
- C. output to input
- D. demand to output
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| 5 |
Internal economies of scale include |
- A. risk-bearing economics
- B. trade mark
- C. managerial economies
- D. a and c of above
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| 6 |
When total product rises marginal product. |
- A. Remains the same
- B. Falls
- C. Also rises
- D. None of the three
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| 7 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
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| 8 |
Economies and diseconomies of scale determine the shape of |
- A. long run AC curve
- B. short run AC
- C. average fixed cost
- D. none of the above
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| 9 |
The law of increasing returns is also known as: |
- A. Law of increasing cost
- B. Law of diminishing cost
- C. Law of constant cost
- D. None of the three
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| 10 |
The maximum point of TP curve is at quantity of labour where |
- A. Average physical product of labour is equal to 1
- B. MPP of labour is at its maximum
- C. curves of APP and MPP of labour intersect
- D. MPP of labour is zero
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