1
A firm achieves least-cost in production by substituting factors until?
B
the ratio of their marginal -physical-products equals the ratio of their prices
C
their marginal -physical-products are each equal to their factor prices
D
their marginal -physical-products are each equal to zero
2
Economics of scale operate only when?
A
marginal cost is falling with input
B
average cost is falling with output
D
variable cost is less than fixed cost
3
At the point of profit maximization by a firm, marginal cost is?
4
A situation in which all inputs are doubled and output also doubles is known as?
C
increasing returns to scale
D
constant returns to scale
5
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
B
marginal utility must fall
C
marginal utility may rise even though his total utility is falling
D
marginal utility may fall even though his total utility may be rising
6
Technical progress that leads to a reduction in costs results in?
A
an increase in equilibrium price and quantity
B
a decrease in equilibrium price and quantity
C
an increase in equilibrium price and decrease in equilibrium quantity
D
a decrease in equilibrium price and increase in equilibrium quantity
7
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
8
The demand for a product is said to be price inelastic if?
A
the price elasticity of demand is less than one
B
the price elasticity of demand is greater than one
C
a reduction in price results in increase in the quantity demanded
D
an increase in price results in a decrease in the quantity demanded
9
An imperfect market in which there is only one buyer of a commodity is?
10
The tailoring services is competitive partly because it consists of a large number of?
B
medium scale enterprises
D
government-owned enterprises
