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Microeconomics

Production Function

Question Very short answer type questions Marks
No
1. The period of time in which the plant capacity can be varied 1
is known as:
a) Short run
b) Long run
c) Both a & b
d) Neither a nor b
2. Law of Variable Proportion is also known as: 1
a) Law of Returns
b) Returns to Variable Factor
c) Law of Returns to Factor
d) All of these
3. When average product increases, the marginal product is: 1
a) Less than average product
b) Equal to average product
c) More than average product
d) None of these

4. What happens to AP, when MP is more than AP? 1
a) AP rises
b) AP falls
c) AP remains constant
d) None of these
5. When AP is maximum, MP is equal to: 1
a) AP
b) TP
c) Zero
d) One

6. At the Point of Inflexion: 1
a) Total product is maximum
b) Average product is maximum
c) Marginal product is maximum
d) Marginal product is zero
7. Name the three phases of LVP.. 1

8. Give two assumptions of LVP. 1