Tag: total product, average product and marginal product

Questions Related to total product, average product and marginal product

Direct costs are _______________.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. Traceable costs

  2. Indirect costs

  3. Implicit costa

  4. Explicit costs

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Correct Option: A

Returns to scale have been classified as constant, increasing and decreasing depending upon the __________________.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. inputs required to produce a given level of output

  2. amount of output produced out of a given amount of inputs

  3. response of output to a change in scale

  4. all of the above

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Correct Option: D

In electricity generation plants, when the plant grows too large risks of plant failure with regard to output increase disproportionately. Hence we are talking about which concept of returns to scale?

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. Constant Returns to Scale

  2. Increasing Returns to Scale

  3. Decreasing Returns to Scale

  4. Balanced Returns to Scale

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Correct Option: C