Scale Of Production and Laws of Returns Mcqs Test Preparation Online

Test Instructions

Scale Of Production and Laws of Returns Mcqs Test Preparation Online

1. Laws of return apply to firms working in:
A.
B.
C.
D.

2. The maximum point on TP curve is at quantity of labour where:
A.
B.
C.
D.

3. Economies of scale:
A.
B.
C.
D.

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.
B.
C.
D.

5. 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.
B.
C.
D.

6. In law of diminishing returns at least one factor:
A.
B.
C.
D.

7. Negative returns in the short run imply that:
A.
B.
C.
D.

8. Economies of scale are of two kinds:
A.
B.
C.
D.

9. Which of the following is example of external economies of scale ?
A.
B.
C.
D.

10. During short period, diminishing returns may follow because:
A.
B.
C.
D.


 

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