Tag: total product, average product and marginal product

Quizzes (0) Questions (53)

Questions Related to total product, average product and marginal product

Multiple choice 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

Direct costs are _______________.

  1. Traceable costs

  2. Indirect costs

  3. Implicit costa

  4. Explicit costs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Direct costs are expenses that can be specifically and easily traced to a particular cost object, such as a product, service, or department. They are synonymous with traceable costs.

Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Returns to scale describe how output changes when all inputs are increased by the same proportion. This encompasses the relationship between input scaling and output response, making all the listed factors relevant to the classification.

Multiple choice 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

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?

  1. Constant Returns to Scale

  2. Increasing Returns to Scale

  3. Decreasing Returns to Scale

  4. Balanced Returns to Scale
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Decreasing returns to scale occur when a proportional increase in all inputs leads to a less than proportional increase in output. In large-scale operations like power plants, inefficiencies or management difficulties can lead to this outcome.