Q. The cause for diminishing returns to scale is:
✅ Correct Answer: (D)
all of the above
Basics of Economics MCQs and Notes
Q. Increasing returns to scale occurs due to
✅ Correct Answer: (D)
all of the above
Q. In the case of diminishing returns to scale, a given proportionate increase in all factors causes
✅ Correct Answer: (C)
a less than proportionate increase in output
Q. Returns to scale refers to the production function where
✅ Correct Answer: (C)
all factors are variable
Q. Total product reaches at maximum when
✅ Correct Answer: (C)
mp = 0
Q. A rational producer will select his level of production in which stage of the law of variable proportions
✅ Correct Answer: (B)
stage ii
Q. The ‘point of inflection’ come in which stage of the law of variable proportions
✅ Correct Answer: (A)
stage i
Q. Law of variable proportions is concerned with
✅ Correct Answer: (C)
short-run production function
Q. The variable cost of a firm vary in direct proportion to the
✅ Correct Answer: (A)
volume of its output