Production function - class-XII
Description: production function | |
Number of Questions: 26 | |
Created by: Mohini Tyagi | |
Tags: economics production and costs producer behaviour and supply production function production analysis laws of returns - returns to a factor and returns to scale |
In the long run production function all inputs are fixed.
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True
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False
In the long run there is enough time for the firm to cover its losses and earn normal profits. This is because in the long run, all inputs are __________.
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identical
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homogenous
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variable
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fixed
The period of time in which the plant capacity can be varied is known as __________.
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the short period
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the market period
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the long period
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all of the above.
In the case of very short period ______ is variable.
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land
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capital
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labour
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none of the above
In short run when the level of production increases, average fixed cost will____.
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remain same
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decrease
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increase
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all the three possible depending upon the merit of case
In the long run ___________.
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all inputs are fixed
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all inputs are variable
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some inputs are fixed and rest are variable
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a few are variable and rest are fixed
In the long run all inputs are variable as there is enough time for all factors to adjust according to the requirements for achieving least cost output.
____ refers to that period in which supply of a commodity can be increased or decreased depending upon changed condition of demand.
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Very short period
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Short period
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Long period
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Very long period
Which of these statement is more appropriate for Fixed costs ____________?
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Fixed cost is fixed only in short run
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It is fixed in long run also
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It varies with the change in level of output
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It is strictly avoidable in short run also
In the short run with the increase in output ____________.
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The fixed cost also increases
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Total variable cost increase in totality but total fixed cost remain same
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Total variable cost falls along with fixed cost
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Average variable cost falls
Whether a firm will plan for short-run or long-run production depends upon the __________.
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nature of demand for its product
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availability of inputs
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state of technology
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all of the above
In economics, _______ is a period where all factors/inputs are variable.
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long run
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short run
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very short period
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none of above
In the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.
In economics, ________ is a period where some factor inputs are fixed, while the others are variable.
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long run
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short run
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very long period
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none of the above
The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. It is in the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.
The short run is characterized by ___________.
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at least one fixed factor of production and firms neither leaving nor entering the industry
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a period where the law of diminishing returns does not hold
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no variable input, i.e., all of the factors of production are fixed
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all inputs being variable
The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. Firms in perfect competition can make super normal/subnormal profits in the short run as firms are allowed to enter and exit the market only in the long run.
To economists, the main difference between the short run and the long run is that _____________.
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in the short run all inputs are fixed, while in the long run all inputs are variable
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in the short run the firm varies all of its inputs to find the least-cost combinations of inputs
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in the short run, at least one of the firm's inputs levels is fixed.
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in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently
The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. In the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.
"Law of diminishing returns" or "Law of variable proportion" operate in ___________.
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long run
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short run
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very long period
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none of the above
For the law of diminishing returns or variable proportions to operate, at least one factor needs to be fixed, as only then can factor proportions be changed, this happens in the short run. In the long run all factors are variable and thus it is not possible for the law of diminishing returns or law of variable proportions to operate.
The "law of diminishing returns" applies to _________.
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the short run, but not the long run
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the long run, but not the short run
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both the short run and the long run
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neither the short run nor the long run
For the law of diminishing return to operate at least one factor needs to be fixed, as only then can factor proportions be changed, this happens in the short run. In the long run all factors are variable and thus it is not possible for the law of diminishing returns to operate.
In describing a given production technology, the short run is best described as lasting __________.
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upto six months from now
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upto five years from now
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as long as all inputs are fixed
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as long as at least one input is fixed
Short run does not correspond to a specific time frame, rather is varies by the industry of operation, and sometimes it can even vary between different firms in the same industry. A firm is considered to be in the short run as long as at-least one factor of production is fixed.
Which of the following statement is true?
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In short run, some of the factors of production are fixed and other may vary.
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In short run, all the factors of production are fixed.
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In short run, all the factors of production are variable.
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In short run, there are no fixed factors of production.
The term ______ is defined as that length of time over which the firm gets an opportunity to vary if need be the quantities of all its inputs.
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short run
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long run
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very short period
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all of the above
In the long run production function all inputs are fixed.
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True
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False
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Partly true
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None of the above
In the long run all factors are variable as the firm has enough time and other resources to vary any of its factors of production.
In the long run _________.
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all inputs, such as labour, equipment and offices or factories can be varied, and so total variable cost is equal to total cost since fixed cost is equal to zero
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all inputs except labour can be varied, and so total variable cost remains unchanged but fixed cost is equal to zero
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all inputs, such as labour, equipment and offices or factories can be varied, and so average fixed cost is lower
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All inputs such as labour, equipment and offices or factories can be varied, and so total variable and fixed cost are lower
Which of the following is an assumption in the Law of Variable Proportions?
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The Fixed Factor of production is scarce
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There are no perfect substitutes for the Fixed Factor
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Factors of Production can be used in any proportion
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All of the above
Law of Returns to Scale indicates the responsiveness of total product when all inputs ________________.
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Remain same
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Are changed drastically
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Are changed marginally
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Are changed proportionately
In a small scale rubber plant, factors of production like labour, material and capital are increased by 10% and output increases. It implies that the Firm is experiencing ________.
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Constant Returns to Scale
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Decreasing Returns to Scale
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Increasing Returns to Scale
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Increasing as well as decreasing
A short-run production function is one which has ___________.
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at least one fixed factor
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all fixed factors
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all variable factors
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at least one variable factor
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True
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False
Quitting is not possible in the short run because short run, by definition, is a period of time which is too short for the existing firms to quit the industry or for any new firms to enter the industry. Therefore, a firm can quit the industry only in the long run.