Returns to Scale Refers to the Production Function Where

Q11: Total product reaches at maximum when<br>A)mp is

Q12: In long-run<br>A)all inputs are fixed<br>B)all inputs are

Q13: The variable cost of a firm vary

Q14: Demand varies ------------- with price.<br>A)directly<br>B)positively<br>C)inversely<br>D)none of the

Q15: When Q = f (P), the elasticity

Q16: Law of variable proportions is concerned with<br>A)long-run

Q17: The solution to diminishing returns to scale

Q19: Income elasticity is positive, but less than

Q20: When TU falls, MU is:<br>A)rises<br>B)zero<br>C)positive<br>D)negative

Q21: The cause for diminishing returns to scale