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. 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.

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

3. 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.

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

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

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

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

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

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

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


 

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