Production Analysis

Production function shows the technological relationship between ......

• Owner and Manager

• Owner and Labor

• Manager and Labor

• Inputs and Output

Long run production function means .........

• Some factors are variable

• Some factors are constant

• Some factors are variable and some are constant

• All the factors are variable

Law of variable proportion is also called ......

• The law of increasing returns

• The law of diminishing returns

• The law of constant returns

• Long run production function

In the short run production function, as the quantity of variable factor is increased the output also increases but after a certain point output .........

• Starts being constant

• Declines

• Also increases

• Doesn't effect

Optimal utilization of resources is maintained at the point where .......

• MPL = MPK

• w = r

• MPL/w = MPK/r

• MPL - MPK = 0

An Iso-quant shows the same level of ........ throughout the curve.

• satisfaction

• production

• expenditure

• profit

In the law of returns to scale, the increasing gap between successive Iso-quants mean............

• Increasing return

• Decreasing return

• Constant return

• Negative return

Slope of Iso-cost is determined by .......

• Quantity of factors

• Volume of expenditure

• Level of output

• Prices of factors