Scale Of Production and Laws of Returns Mcqs Test Preparation Online

1. Laws of return apply to firms working in:

2. 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:

3. Negative returns in the short run imply that:

4. Economies of scale:

5. The maximum point on TP curve is at quantity of labour where:

6. Economies of scale are of two kinds:

7. 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:

8. Which of the following is example of external economies of scale ?

9. In law of diminishing returns at least one factor:

10. During short period, diminishing returns may follow because: