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WorksheetsC5 : SET 3 - PRODUCTION THEORY
Total questions: 10
Worksheet time: 3mins
In the short Run, all inputs are considered to be variable inputs.
TRUE
FALSE
When MP increases, TP will increase at increasing rate.
TRUE
FALSE
When MP decreases, TP will increase at decreasing rate.
TRUE
FALSE
When MP zero, TP reaches its maximum level.
TRUE
FALSE
When MP = AP, AP reaches its maximum level.
TRUE
FALSE
Which is not considered to be a fixed input?
Factory buildings
Offices
Raw materials
Efficient managers
Production costs exist due to __________________.
mans’ unlimited wants.
stagnant technology.
government taxes.
limited factors of production.
Fixed costs are costs related to __________________.
inputs.
fixed inputs.
variable inputs.
fixed inputs and variable inputs.
Which is not variable cost?
Labor costs.
Raw material costs.
Transportation fuel costs.
Machinery purchase cost.
The difference between total cost and variable cost is ____________________.
fixed cost.
average cost.
marginal cost.
average fixed cost.
