If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be:

Related MCQs

• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• When both average and total product are greater than zero, and marginal product equals average product, then total product:
• The reason the marginal cost curve eventually increases as output increases for the typical firm is because:
• Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
• If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
• Whenever average product is declining, with increases in input usage,
• The total product curve may initially show output increasing at an increasing rate as more labour is hired because of the:
• If the short-run average variable costs of production for a firm are rising, then this indicates that:
• The marginal product of labor curve shows the change in total product resulting from:
• When marginal product reaches its maximum, what can be said of total product?