Returns to Scale

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What Is the Least Cost Combination?

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What Are the Causes of Increasing Returns to a Factor?

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What do you mean by returns to scale?

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What Is the Incorrect Assumption for the Law of Variable Proportions?

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What is meant by increasing returns to a factor?

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What Is Negative Return to a Factor?

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When MP Is Zero, What Is the Value of TP?

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What is meant by decreasing returns to a factor?

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When the Total Product Is Falling, the Marginal Product Is?

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When does increasing returns to scale occur?

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What Happens in the Second Stage of Law of Variable Proportions?

Q. If a firm doubles its inputs and output increases by two and half times then the production function exhibits _________.

1. decreasing returns to scale
2. increasing returns to scale
3. constant returns to scale
4. decreasing cost industry

Q. Increasing returns to scale is a property of a production function _____.

1. that holds when a proportional increase in all inputs results in an increase in output by more than the proportion
2. that holds when a proportional increase in all inputs results in an increase in output by the same proportion
3. that holds when a proportional increase in all inputs results in an increase in output by less than the proportion
4. none of these

Q. Constant returns to scale is a property of a production function _________.

1. that holds when a proportional increase in all inputs results in an increase in output by more than the proportion
2. None of these
3. that holds when a proportional increase in all inputs results in an increase in output by the same proportion
4. that holds when a proportional increase in all inputs results in an increase in output by less than the proportion

Q. Decreasing returns to scale is a property of a production function ______.

1. none of the above
2. that holds when a proportional increase in all inputs results in an increase in output by more than the proportion
3. that holds when a proportional increase in all inputs results in an increase in output by less than the proportion
4. that holds when a proportional increase in all inputs results in an increase in output by the same proportion

Q. Proportionate increase in all factors of production resulting in a more than proportionate increase in output is a case of ___________.

1. decreasing returns to sale
2. constant returns to scale
3. increasing returns to scale
4. all of the above

Q. If decreasing returns to scale is present and all inputs are increased by 10% then _________.

1. output will decrease by 10%
2. output will increase by more than 10%
3. output will increase by less than 10%
4. output will increase exactly by 10%

Q. ________ holds when a proportional increase in all inputs results in an increase in output by less than the proportion.

1. Decreasing returns to scale
2. Constant returns to scale
3. Increasing returns to scale
4. None of these

Q. If increasing returns to scale is present and all inputs are increased by 10% then _________.

1. output will decrease by 10%
2. output will increase by more than 10%
3. output will increase by less than 10%
4. output will increase exactly by 10%

Q. As more labour is added to a fixed amount of input, the rate at which output goes up begins to decrease. This is called ____________.

1. ddiminishing marginal product
2. diminishing marginal costs
3. diminishing marginal profit
4. diminishing marginal utility