Scale Of Production and Laws of Returns Mcqs Test Preparation Online Shani Malik — April 24, 2018 in Economics • add comment Scale Of Production and Laws of Returns Mcqs Test Preparation Online 1. Economies of scale are of two kinds:A. Natural and artificialB. Temporary and permanentC. Managerial and industrialD. Internal and external Loading... 2. Laws of return apply to firms working in:A. MonopolyB. Small firm C. All kinds of market situationsD. Perfect competition 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. Suggest that firm's marginal cost curve lies above its average cost curveD. None of these 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. The MP of labour is greater than AP of labour C. (b) and (c)D. The additional workers are more efficient Loading... 5. During short period, diminishing returns may follow because:A. Quantity of labour is fixedB. Quantity of any one factor is fixedC. Quantity is fixedD. Quantity of capital is fixed Loading... 6. The maximum point on TP curve is at quantity of labour where:A. MPP of labour is zeroB. MPP of labour is at its maximumC. Curves of APP and MPP of labour intersectD. Average physical product of labour is equal to 1 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. MP and AP always moves in opposite directionsB. The MP of labour is greater than AP of labourC. The additional workers are more efficientD. None of these Loading... 8. In law of diminishing returns at least one factor:A. Must be constantB. Must be owned by the firmC. Must be efficientD. Must be purchasable Loading... 9. 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... 10. Which of the following is example of external economies of scale ?A. Hiring of specialized staff due to increase in scale of productionB. Technical progress leads to development of machines at low priceC. Discount on purchases of raw materials D. A firm starts producing by products Loading... Loading... Related NTS Results Post:Cost of Production Test 01 Preparation OnlineBiology Mcqs Test 09 Online PreparationBiology Mcqs Test 08 Online PreparationBiology Mcqs Test 06 Online PreparationGeography Test 2 Mcqs Online PreparationGeography Test 3 Mcqs Online PreparationGeography Test 4 Mcqs Online PreparationGeography Test 1 Mcqs Online Preparation