What Is the Incorrect Assumption for the Law of Variable Proportions?
Incorrect assumption for the law of variable proportions is that the proportion of the factors of the production remains the... View Article
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What Is the Other Name for the Law of Variable Proportion?
The other name for the law of variable proportion is the law of proportionality or the law of diminishing returns.... View Article
Which Law Is Applicable in the Short Run Production Function?
In the short run production function, the law of variable proportions is applicable. Also read: Total Product Average Product and... View Article
What Is the Law of Production Function?
Production function studies the relationship between physical output of production and the physical inputs or factors of the production process.... View Article
How Is Total Cost Calculated?
In economics, total cost is calculated as the sum total of all variable and fixed costs. It can be represented... View Article
What Is the Formula of the Total Product?
Total product is referred to as the total volume of output produced by a firm using given inputs. The total... View Article
Why Does It Not Make Any Economic Sense to Produce in Stage 1 or Stage 3?
In Stage 1 the firm will not be using the capacity of the production to its optimum capacity or it... View Article
What Are the Limitations of the Law of Diminishing Returns?
The following are the limitations of the law of diminishing returns: This law, although considered to be useful in production... View Article
What Are the Different Phases in Law of Variable Proportion?
The different stages or phases in law of variable proportion are: Stage 1: In this stage the curve of total... View Article
What Is a Short Run Period?
Short run period is a term used in economics to describe a period of production in the future in which... View Article
What Happens in the Second Stage of Law of Variable Proportions?
In the second stage of law of variable proportions the total product continues to increase at a diminishing rate till... View Article
What Is TP, MP and AP?
TP stands for the Total product, MP stands for the Marginal Product and AP stands for the average product. Let’s... View Article
What Is Meant by the Law of Diminishing Returns?
Law of diminishing returns or law of diminishing marginal productivity in economics is a law that states that when one... View Article
When the Total Product Is Falling, the Marginal Product Is?
The marginal product also falls with respect to the total product. Also read: Meaning of Demand and Factors Affecting Demand... View Article
What Is the Maximum Point of TP?
The maximum point of TP is when MP becomes zero. Also read: Meaning of Demand and Factors Affecting Demand Law... View Article
What Is Negative Return to a Factor?
Negative returns to a factor states that when more and more units of variable factor are added along with the... View Article
What Is the Least Cost Combination?
The optimum combination of inputs that is required to produce output at the least possible cost is called the least... View Article
___________ Is Called a Book of Original Entry
a) Ledger b) Journal c) Trial Balance d) Bank Reconciliation Statement Answer: b) Journal Journal is that book where all... View Article
Which of the Following Is a Revenue Expenditure?
a) Purchase of Plant and Machinery b) Repairs on Plant and Machinery c) Installation of Plant and Machinery d) Erection... View Article
When Price Falls With Rise in Output, Then?
(a) AR curve is steeper than MR curve (b) TR increases (c) MR curve is steeper than AR curve (d)... View Article
