Theory of Production and Cost-Test 8

Which of the following is not a characteristic of land

The general average cost curve is also known as

Opportunity costs are also known as

If marginal cost is above average variable cost at a time when output is rising, then

All of the following curves are of U-shape except

The advertisement cost is included in

When the law of diminishing returns begins to operate the TVC curve begins to

For perfect substitutability between factors X and Y

Which of the following statements is correct ?

The following is not the characteristic of land ?

The MP of a factor

Which of the following is considered production in economics ?

Rakesh inherited 1 acre of land from his grandfather who paid Rs.10,000 cash for the land back in 1951. Today, land in the area sells for Rs.2,00,000 per acre. What is the opportunity cost to Rakesh for keeping the land ?

When marginal product is zero, total product is

If as a result of 40% increase in all inputs, the output increases by 25%, this is a case of

Suppose a firm produces 10 units of output and incurs Rs.30 per unit variable cost and Rs.5 per unit fixed cost. In this case, total costs

“Production” may be defined as an act of

Short-run cost curve are influenced by

Economies of scale means

Marginal product is

Marginal product becomes negative

When the average product is at its maximum the equality can be reached between

When average product increases, the marginal product is

In short run the law of variable proportions is also known as the

Increasing returns to scale can be explained in terms of

The law of variable proportions comes into being when

Which of the stages is relevant for a firm which aims at maximum economic efficiency in the law of variable proportion :

In the law of variable proportion in stage III the MP curve become negative because of

Increasing returns imply

Law of diminishing returns to factors is relevant to