PRODUCTION FUNCTION

The law of variable proportions is said to exist when

• there are only two variable factoras

• there is a fixed factor and a variable factor

• all factors are variable

The law of variable proportion examines the production function

• is a long run production function

• with one fixed factor

• keeping all factors variable

• with one factor variable, while keeping the other factors fixed

As the slope of the total product curve gets flatter, the curve

• becomes convex

• does not change

• becomes concave

• becomes vertical

When MP is zero

• TP is maixmum

• TP starts falling

• AP becomes negative

• TP is zero

The marginal physical product of labour is given by

• ᐃL/ ᐃQ

• ᐃP/ ᐃL

• ᐃQ/ ᐃL

• Q/L

Which stage represents the range of rational production decision?

• Stage III

• Stage I

• Stage II

At the point of inflexion the marginal product is at its

• maximum

• Zero

• Negative

• is equal to total product

Law of variable proportion is the new name of the famous

• Production Function

• Law of Diminishing Returns

• Law of Demand

• Returns to Scale

_____________ is a function of inputs.

• Raw Materials

• Output

• Production Function

• Labour

________ an addition to the total production by the employment of an extra unit of a factor.

• Average Product

• Total Product

• Marginal Product

• Output