Production

Which of the following statements accurately describe the relationship between AP and MP?

• No relationship exists

• AP and MP are always parallel to each other

• MP intersects AP at its maximum point,

• AP is always rising when MP is falling and vice-versa,

When MP is zero, what can you say about TP?

• TP is increasing

• TP is maximum

• TP is falling

• None of the above

The period of time in which the plant capacity can be varied is known as:

• Short run

• Long run

• Both a and b

• none of the above

is the extension of "Law of Diminishing Returns".

• Law of Variable Proportions

• Law of Demand

• Law of Equi-marginal utility

• Law of Diminishing Marginal Utility

Identify the phase in which TP increases at an increasing rate and MP also increases.

• Increasing returns to a factor

• ) Diminishing returns to a factor

• Negative returns to a factor

• None of these

Which of the following is a reason for operation of increasing returns to a factor?

• Better utilisation of fixed factor

• Specialisation

• Better Coordination

• All of the above

When average product increases, the marginal product is:

• Less than average produc

• Equal to the average product

• More than average product

• None of these

What is the behaviour of TP, when MP becomes negative?

• TP increases at an increasing rate

• TP increases at diminishing rate

• TP is at its maximum point

• TP decrease

According to Law of Variable Proportions, there are ____ phases.

• 1

• 3

• 2

• 4

Average product cannot be negative because:

• Total product can never be negative

• Total product can never be zero

• Neither (a) nor (b)

• Both (a) and (b)