Question

2 - Average fixed costs of production

a - will rise at a fixed rate as more is produced.

b - remain constant.

c - graphs as a U-shaped curve.

d - falls as long as output is increasing.

3 - The law of diminishing returns only applies in cases where:

a - there is increasing scarcity of factors of production.

b - the price of extra units of a factor is increasing.

c - there is at least one fixed factor of production.

d - capital is a variable input

4 - If marginal cost is above average variable cost, then:

a - Average variable cost is falling

  b - Average variable cost is rising

c - Average variable cost is constant

d - Marginal cost is rising

5 - The short run is:

a - Measured by calendar time and is usually six months or less.

b - Measured by calendar time and is usually one year or less.

c - Any period of time in which at least one resource is fixed.

d - The same for all firms

6 - The marginal cost curve intersects with the total variable cost curve at its:

a - Minimum

b - Maximum

c - They don’t intersect

d - Depends on the fixed cost

Answer 1

2. Ans b

Average fixed costs of production will remain constant as same amount in spread in a large volume of units of output

3 Ans B

The law of diminishing returns only applies in cases where  the price of extra units of a factor is increasing.

4 Ans b

If marginal cost is above average variable cost, then Average variable cost is rising

5 Ans c

The short run is Any period of time in which at least one resource is fixed.

6 Ans

The marginal cost curve intersects with the total variable cost curve at its Minimum

Hope this Helps :)

Please Give a thumbs up If it Does