Economics Scale Of Production and Laws of Returns Mcqs Test Preparation Online Scale Of Production and Laws of Returns Mcqs Test Preparation Online 1. Laws of return apply to firms working in:A. All kinds of market situationsB. Small firm C. MonopolyD. Perfect competition Loading... 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:A. (b) and (c)B. The additional workers are more efficientC. The MP of labour is greater than AP of labour D. MP and AP always moves in opposite directions Loading... 3. Negative returns in the short run imply that:A. Average product is negative B. Total cost is fallingC. Marginal is negativeD. Total product is negative Loading... 4. Economies of scale:A. None of theseB. Suggest that the firm's marginal cost curve lies under its average cost curveC. Occur when an increase in input causes a less than proportionate increase in output D. Suggest that firm's marginal cost curve lies above its average cost curve Loading... 5. The maximum point on TP curve is at quantity of labour where:A. MPP of labour is zeroB. Average physical product of labour is equal to 1C. Curves of APP and MPP of labour intersectD. MPP of labour is at its maximum Loading... 6. Economies of scale are of two kinds:A. Managerial and industrialB. Internal and externalC. Natural and artificialD. Temporary and permanent Loading... 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:A. The MP of labour is greater than AP of labourB. MP and AP always moves in opposite directionsC. The additional workers are more efficientD. None of these Loading... 8. Which of the following is example of external economies of scale ?A. A firm starts producing by productsB. Discount on purchases of raw materials C. Technical progress leads to development of machines at low priceD. Hiring of specialized staff due to increase in scale of production Loading... 9. In law of diminishing returns at least one factor:A. Must be constantB. Must be efficientC. Must be owned by the firmD. Must be purchasable Loading... 10. During short period, diminishing returns may follow because:A. Quantity of capital is fixedB. Quantity is fixedC. Quantity of labour is fixedD. Quantity of any one factor is fixed Loading... Loading... Related PostsCost of Production Test 01 Preparation OnlinePhysics MCQs Online Test 01 for PreparationPhysics MCQs Online Test 02 for PreparationEducation & Pedagogy MCQs Test 05 Online for PreparationAgriculture Information MCQs Test 09 For Online PreparationEducation & Pedagogy MCQs Test 03 Online for Preparation Continue Reading Previous Public Finance Test 07 Mcqs Preparation OnlineNext Profit Maximization Test 01 Mcqs Preparation Online Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Δ