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Economics Mcqs

If a production function exhibits diminishing marginal product. its slope ?

Average And Total Cost, Economics Mcqs /
If a production function exhibits diminishing marginal product. its slope ?

A. is linear (a straight line)
B. becomes steeper as the quantity of the input increase
C. could be any of these answers
D. becomes flatter as the quantity of the input increase

If a production function exhibits diminishing marginal product. its slope ? Read More »

Average And Total Cost, Economics Mcqs

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

Average And Total Cost, Economics Mcqs /
Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?

A. Rs80,000
B. Rs30,000
C. Rs75,000
D. Rs70,000

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ? Read More »

Average And Total Cost, Economics Mcqs

In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?

Average And Total Cost, Economics Mcqs /
In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?

A. an increase in average total costs
B. diseconomies of scale
C. economies of scale
D. constant returns to scale

In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ? Read More »

Average And Total Cost, Economics Mcqs

If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?

Average And Total Cost, Economics Mcqs /
If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?

A. is liner (a straight line)
B. could be any of these answers
C. becomes steeper as the quantity of output increases
D. become flatter as the quantity of output increases.

If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ? Read More »

Average And Total Cost, Economics Mcqs