Worksheetstheory of cost
Total questions: 5
Worksheet time: 4mins
Name
Class
Date
1.
According to the Law of Diminishing Marginal _________, the more you use of a variable input (like labor or physical capital), the less it will increase output.
a)
Demand
b)
Supply
c)
Returns
d)
Love
2.
The property whereby long-run average total cost falls as the quantity of output increases.
a)
Economies of Scale
b)
Efficient Scale
c)
Constant Returns to Scale
d)
Diseconomies of Scale
3.
From the theory of production, economic efficiency refers to _________________.
a)
the combination of inputs that will maximize outputs.
b)
the combination of inputs that involves minimal costs.
c)
the combination of inputs that involves decreasing costs.
d)
the combination of inputs that involves a constant cost.
4.
How can a firm minimise it's cost of production
(a)
5.
Total cost= avrege cost - marginal cost. True / False
(a)
100 %
