Economics Scale Of Production and Laws of Returns Mcqs Test Preparation Online 0 Scale Of Production and Laws of Returns Mcqs Test Preparation Online 1. Negative returns in the short run imply that:A. Total cost is fallingB. Marginal is negativeC. Total product is negativeD. Average product is negative Loading... 2. The maximum point on TP curve is at quantity of labour where:A. Average physical product of labour is equal to 1B. Curves of APP and MPP of labour intersectC. MPP of labour is zeroD. MPP of labour is at its maximum Loading... 3. Economies of scale:A. None of theseB. Occur when an increase in input causes a less than proportionate increase in output C. Suggest that the firm's marginal cost curve lies under its average cost curveD. Suggest that firm's marginal cost curve lies above its average cost curve Loading... 4. When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product (MP) of labour falls but the average product (AP) of labour rises. This can be explained by the factors that:A. The additional workers are more efficientB. (b) and (c)C. MP and AP always moves in opposite directions D. The MP of labour is greater than AP of labour Loading... 5. Which of the following is example of external economies of scale ?A. Hiring of specialized staff due to increase in scale of productionB. Discount on purchases of raw materials C. Technical progress leads to development of machines at low priceD. A firm starts producing by products Loading... 6. Laws of return apply to firms working in:A. All kinds of market situationsB. Small firm C. Perfect competition D. Monopoly Loading... 7. Economies of scale are of two kinds:A. Internal and externalB. Temporary and permanentC. Natural and artificialD. Managerial and industrial Loading... 8. During short period, diminishing returns may follow because:A. Quantity of any one factor is fixedB. Quantity is fixedC. Quantity of capital is fixedD. Quantity of labour is fixed Loading... 9. In law of diminishing returns at least one factor:A. Must be owned by the firmB. Must be purchasable C. Must be efficientD. Must be constant Loading... 10. When a firm using a fixed amount of land and capital takes on more workers, it finds that marginal product (MP) of labour falls but the average product (AP) of labour rises. This can be explained by the factors that:A. None of theseB. MP and AP always moves in opposite directionsC. The MP of labour is greater than AP of labourD. The additional workers are more efficient Loading... Loading... Related PostsCost of Production Test 01 Preparation OnlinePhysics MCQs Online Test 02 for PreparationPhysics MCQs Online Test 01 for PreparationPhysics MCQs For Entry Test 01 Online PreparationPhysics MCQs For Entry Test 2 Online PreparationPakistan Studies MCQs Test 01 Online for PreparationPakistan Studies MCQs Test 02 Online for PreparationPakistan Studies MCQs Test 03 Online for PreparationInformation System MCQs Test 01 Online for PreparationInformation System MCQs Test 02 Online for Preparation Continue Reading Previous Public Finance Test 07 Mcqs Preparation OnlineNext Profit Maximization Test 01 Mcqs Preparation Online More Stories Economics Economics Quiz 04 Preparation Online 0 Economics Economics Quiz 03 Preparation Online 0 Economics Economics Quiz 02 Preparation Online 0 Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ