| 1 |
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
|
| 2 |
Which one is the small scale production. |
- A. Bata shoe factory
- B. A barber shop
- C. kohinoor Textile Industries
- D. Sufi soap
|
| 3 |
In production of goods, negative returns in the short run imply that |
- A. average product is negative
- B. total product is negative
- C. marginal product is negative
- D. marginal cost is falling
|
| 4 |
When total product (TP) reaches its maximum, Marginal product (MP) is_ |
- A. Zero
- B. Positive
- C. Negative
- D. Rising
|
| 5 |
When average product falls marginal product |
- A. Rises
- B. Also falls
- C. Remain equal to average product
- D. Does not change
|
| 6 |
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 of labour is grater than AP of labour
- B. additional workers are more efficient
- C. MP and AP are equal
- D. AP is maximum
|
| 7 |
When MP is zero, TP is |
- A. minimum
- B. maximum
- C. rising
- D. falling
|
| 8 |
Economics of scale are of two kinds |
- A. temporary and permanent
- B. internal and external
- C. managerial and industrial
- D. natural and artificial
|
| 9 |
When average product (AP) and marginal product (MP) are rising. |
- A. AP > MP
- B. AP = MP
- C. AP < MP
- D. AP = MP = 0
|
| 10 |
When total product falls, marginal product is. |
- A. Zero
- B. Positive
- C. Negative
- D. Falling
|
