Scale Of Production and Laws of Returns Mcqs Test Preparation Online Leave a Comment / Economics / By Shani Malik Scale Of Production and Laws of Returns Mcqs Test Preparation Online 1. Laws of return apply to firms working in:A. Perfect competition B. All kinds of market situationsC. Small firm D. Monopoly Loading... 2. The maximum point on TP curve is at quantity of labour where:A. Curves of APP and MPP of labour intersectB. MPP of labour is at its maximumC. MPP of labour is zeroD. Average physical product of labour is equal to 1 Loading... 3. Economies of scale:A. Occur when an increase in input causes a less than proportionate increase in output B. Suggest that the firm's marginal cost curve lies under its average cost curveC. None of theseD. 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. MP and AP always moves in opposite directions B. (b) and (c)C. The additional workers are more efficientD. The MP of labour is greater than AP of labour Loading... 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. The MP of labour is greater than AP of labourB. MP and AP always moves in opposite directionsC. None of theseD. The additional workers are more efficient Loading... 6. In law of diminishing returns at least one factor:A. Must be purchasable B. Must be efficientC. Must be constantD. Must be owned by the firm Loading... 7. Negative returns in the short run imply that:A. Total cost is fallingB. Total product is negativeC. Marginal is negativeD. Average product is negative Loading... 8. Economies of scale are of two kinds:A. Managerial and industrialB. Natural and artificialC. Temporary and permanentD. Internal and external Loading... 9. Which of the following is example of external economies of scale ?A. Discount on purchases of raw materials B. Hiring of specialized staff due to increase in scale of productionC. A firm starts producing by productsD. Technical progress leads to development of machines at low price Loading... 10. During short period, diminishing returns may follow because:A. Quantity of capital is fixedB. Quantity of any one factor is fixedC. Quantity of labour is fixedD. Quantity is fixed Loading... Loading... Related NTS Results Post:Biology Mcqs Test 14 Online PreparationBiology Mcqs Test 13 Online PreparationBiology Mcqs Test 12 Online PreparationBiology Mcqs Test 15 Online PreparationChemistry MCQs Test 06 Online PreparationChemistry MCQs Test 07 Online PreparationIslamiat Mcqs Test 03 Online PreparationIslamiat Mcqs Test 02 Online Preparation