| 1 |
When business expands beyond its optimum level what type of economics will it be getting. |
- A. Diseconomies
- B. Internal economies
- C. External economies
- D. Maanagerial economics
|
| 2 |
The law of variable proportions was presented by. |
- A. Jevens
- B. Rayon
- C. Hicks
- D. Valentine
|
| 3 |
When MP curve cuts AP curve, the AP is at its. |
- A. Lowest point
- B. Highest point
- C. Neither of the two
- D. Eighter of the two
|
| 4 |
Economies of scale |
- A. occur when increase in input less than proportionate increase in output
- B. suggest that firm's marginal cost curve lies above its average cost curve
- C. suggest that the firm's marginal cost curve is declining
- D. occur when average cost is falling
|
| 5 |
In law of diminishing returns at least one factor |
- A. must be constant
- B. must be owned by the firm
- C. must be purchasable
- D. must be efficient
|
| 6 |
during short period, diminishing returns may follow because |
- A. quantity of labour is fixed
- B. quality of labour is fixed
- C. quantity of capital is fixed
- D. quantity of any one factor is fixed
|
| 7 |
The law of increasing returns is also known as: |
- A. Law of increasing cost
- B. Law of diminishing cost
- C. Law of constant cost
- D. None of the three
|
| 8 |
The production function relates to |
- A. cost of output
- B. cost of input
- C. output to input
- D. demand to output
|
| 9 |
When diseconomies of scale outweigh economies of scale the |
- A. long run AC curve rises
- B. marginal cost falls
- C. long run ATC curve falls
- D. AVC falls
|
| 10 |
Commercial economics are a pat of: |
- A. Internal economics
- B. External economics
- C. Economies of scale
- D. None of the three
|
