Tag: land,labour, capital and entrepreneur

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Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In the short run with the increase in output ____________.

  1. The fixed cost also increases

  2. Total variable cost increase in totality but total fixed cost remain same

  3. Total variable cost falls along with fixed cost

  4. Average variable cost falls
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the short run, at least one factor of production is fixed. As output increases, the firm must use more variable inputs, which increases the total variable cost, while total fixed costs remain constant.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

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

  1. nature of demand for its product

  2. availability of inputs

  3. state of technology

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A firm's decision to plan for the short run or long run depends on various strategic factors including market demand, resource availability, and technological capabilities. All these factors influence the flexibility and scale of production planning.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In economics, _______ is a period where all factors/inputs are variable.

  1. long run

  2. short run

  3. very short period

  4. none of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

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

  1. long run

  2. short run

  3. very long period

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. It is in the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

The short run is characterized by ___________.

  1. at least one fixed factor of production and firms neither leaving nor entering the industry

  2. a period where the law of diminishing returns does not hold

  3. no variable input, i.e., all of the factors of production are fixed

  4. all inputs being variable
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. Firms in perfect competition can make super normal/subnormal profits in the short run as firms are allowed to enter and exit the market only in the long run.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

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

  1. in the short run all inputs are fixed, while in the long run all inputs are variable

  2. in the short run the firm varies all of its inputs to find the least-cost combinations of inputs

  3. in the short run, at least one of the firm's inputs levels is fixed.

  4. in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. In the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

"Law of diminishing returns" or "Law of variable proportion" operate in ___________.

  1. long run

  2. short run

  3. very long period

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For the law of diminishing returns or variable proportions to operate, at least one factor needs to be fixed, as only then can factor proportions be changed, this happens in the short run. In the long run all factors are variable and thus it is not possible for the law of diminishing returns or law of variable proportions to operate.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

The "law of diminishing returns" applies to _________.

  1. the short run, but not the long run

  2. the long run, but not the short run

  3. both the short run and the long run

  4. neither the short run nor the long run
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For the law of diminishing return to operate at least one factor needs to be fixed, as only then can factor proportions be changed, this happens in the short run. In the long run all factors are variable and thus it is not possible for the law of diminishing returns to operate.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In describing a given production technology, the short run is best described as lasting __________.

  1. upto six months from now

  2. upto five years from now

  3. as long as all inputs are fixed

  4. as long as at least one input is fixed
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Short run does not correspond to a specific time frame, rather is varies by the industry of operation, and sometimes it can even vary between different firms in the same industry. A firm is considered to be in the short run as long as at-least one factor of production is fixed. 

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

Which of the following statement is true?

  1. In short run, some of the factors of production are fixed and other may vary.

  2. In short run, all the factors of production are fixed.

  3. In short run, all the factors of production are variable.

  4. In short run, there are no fixed factors of production.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Short run does not correspond to a specific time frame, rather is varies by the industry of operation, and sometimes it can even vary between different firms in the same industry. A firm is considered to be in the short run as long as at-least one factor of production is fixed.