Theory of production, costs & revenue – Test 3

In economics,__________ is a period where some factor inputs are fixed, while the others are variable.

To economists, the main difference between the short run and the long run is that-

In economics, ________ is a period where all factor inputs are variable.

Whether a firm will plan for short-run or long-run production depends upon the-

In the long run__________

In the long run production function all inputs are fixed.

The short run, as economists use the phrase, is characterized by:……….

In a very short period market-

Secular period is also known as-

The law of diminishing marginal returns indicates that marginal return

“Law of diminishing returns” or “Laws of variable proportion” operate in-

The “Law of diminishing returns” applies to:…………

Law of “Returns to Scale” operated in-

The law of variable proportion shows he production function with-

The law of variable proportion states that, if one factor is used more and more (variable), keeping the other factors constant, the total output will-

Diminishing marginal returns implies-

According to__________, “As we increase the quantity of any one input which is combined with a fixed quantity of the other inputs, the marginal physical productivity of the variable input must eventually decline”.

According to________, “an increase in some inputs relative to other fixed inputs will in a given state of technology, cause output to increase but after a point the extra output resulting from the same additions of extra inputs will become less and less”

Which of the following assumption is applicable for the law of variable proportion?

Which of the following assumption is not applicable for the law of variable proportion?

According to_______, “An increase in the capital and labour applied in the cultivation of land causes in general a less than proportionate increase in the amount of product raised unless it happens to coincide with an improvement in the arts of agriculture.”

When total product increases at an increasing rate, it is known as-

When total product continues to increase at a diminishing rate, it is known as-

When total product decreases and marginal product becomes negative, it is known as-

The “Law of diminishing returns” applies to-