Firms: Production

	You are here: Home > Learning Materials > Economics > Question Bank > Firms: Production

Use the drop down boxes below to find resources related to this page.

Question Bank - Economics

Q1. If a production function exhibits diminishing marginal product, its slope (Select one answer) (a) is linear (a straight line) (b) becomes steeper as the quantity of the input increases (c) could be any of these answers (d) becomes flatter as the quantity of the input increases

Source:

Q2. If a production function exhibits diminishing marginal product, the slope of the corresponding total-cost curve (Select one answer) (a) is linear (a straight line) (b) could be any of these answers (c) becomes steeper as the quantity of output increases (d) becomes flatter as the quantity of output increases

Source:

Q3. The production process described below exhibits

(Select one answer)

(a)

constant marginal product of labour

(b)

diminishing marginal product of labour

(c)

increasing returns to scale

(d)

increasing marginal product of labour

(e)

decreasing returns to scale

Source:

Q4. Which of the following is a variable cost in the short run? (Select one answer) (a) rent on the factory (b) wages paid to factory labour (c) interest payments on borrowed financial capital (d) payment on the lease for factory equipment (e) salaries paid to upper management

Source:

Contents | Previous | Next