(A) The short run only.
(B) The long run only.
(C) Both the short and the long run.
(D) Neither the short nor the long run.
Tag: Economics Mcqs
Writing total output as Q, change in output as dQ, total labor employment as L, and change in labor employment as dL, the marginal product of labor can be written algebraically as:
(A) dQ d L.
(B) Q / L.
(C) dL / dQ.
(D) dQ / dL.
A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called:
(A) An isoquant.
(B) A production possibility curve.
(C) A production function.
(D) An isocost function
Why is the law of diminishing marginal returns true?
(A) Specialization and division of labor
(B) Spreading the average fixed cost
(C) Limited capital
(D) All factors being variable in the long-run
Two curves that remain parallel as the quantity of output increases are:
(A) Total fixed cost and total variable cost.
(B) Total cost and total variable cost.
(C) Average fixed cost and average variable cost.
(D) Average total cost and average fixed cost.
Marginal product, mathematically, is the slope of the:
(A) Total product curve.
(B) Average product curve.
(C) Marginal product curve.
(D) Implicit product curve.
In the long run:
(A) All inputs are fixed.
(B) All inputs are variable.
(C) At least one input is variable and one input is fixed.
(D) At most one input is variable and one input is fixed.
In a production process, all inputs are increased by 10%; but output increases less than 10%. This means that the firm experiences:
(A) Decreasing returns to scale.
(B) Constant returns to scale.
(C) Increasing returns to scale.
(D) Negative returns to scale.