Question

In the short run in production a firm:

        a.     has at least one fixed input                    c.     can only change one input

        b.    has at most one variable input               d.     can change all of its inputs

A firm’s production function describes the relationship between

        a.     inputs and cost of production                

        b.    inputs and output

        c.     output and cost

        d.    output and revenue

If a firm’s expansion path curves upward at an increasing rate, this implies

        a.     it uses proportionately more labor than capital as output expands

        b.    its costs will be increasing at an increasing rate as output expands

        c.     its production function exhibits increasing returns to scale

        d.    it uses proportionately more capital than labor as output expands

        

Answer 1

Answer 1 is A

Because when we assumed in a firm two factors of production labour and capital.

In short run at least one factor is fixed .

But in long run both are variable.

Answer 2 is B

Production function is related to input and output.

Input like labour and capital combination and use this combination producer produce output.

Answer 3is C

Because expansion path is the locus of point of producer equilibrium resulting from changes in total outlay while keeping factors price constant.

So when output grows proportionately more then input.

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