Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?

Related Mcqs:

1. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal)
   B. slope upward
   C. slope downward
   D. be U-shaped.

2. If the total product of two workers is 80 and the total product of 3 workers is 90 then the average product of the third worker is ________ and the marginal product of the third worker is _________?

   A. 160; 270
   B. 10; 30
   C. 10; 3.33
   D. 30; 10

3. If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?

   A. cause a reduction is output
   B. have no effect on output
   C. increase the marginal product of the factor
   D. generate ever smaller amounts of output

4. A company is in the ________ stage of the new product development process when the company develops the product concept into a physical product in order to assure that the product idea can be turned into a workable product ?

   A. product development
   B. commercialization
   C. marketing strategy
   D. business analysis

5. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

   A. decreased production
   B. maintained production at the current level
   C. temporarily shut down.
   D. increased production

6. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

   A. greater than average cost, greater than average cost
   B. less than average cost, greater than average cost
   C. less than average cost, less than average cost
   D. greater than average cost, less than average cost

7. If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?

   A. total variable cost curve
   B. marginal cost curve
   C. total product of labour curve
   D. marginal product of labour curve

8. If both marginal cost and marginal revenue increase, a firm ?

   A. Should increase output
   B. Should reduce output
   C. will require further information on how to respond
   D. Should not change output

9. When marginal revenue equals marginal cost ?

   A. Total revenue equals total cost
   B. There is the biggest positive difference between total revenue and total cost
   C. There is the biggest negative difference between total revenue and total cost
   D. Profits are Zero

10. If marginal revenue equals marginal cost ?

    A. No profit is being made
    B. Total revenue equals total cost
    C. Profits are maximised
    D. Producing another unit would increase profits