16 Questions
Which law deals with a production function with one variable input in the short run?
Law of variable proportions
In which law can the production be increased only by employing more units of a variable factor, or by keeping the quantities of other factors constant?
Law of variable proportions
Which law examines the production function with one factor variable, keeping the quantities of other factors fixed?
Law of variable proportions
In which law can the production be increased by increasing the employment of all factors in the same proportion simultaneously in the long run?
Law of returns to scale
Which law operates in the long run where all factors are variable?
Law of returns to scale
What are the three stages described under the law of variable proportions?
Increasing, constant and diminishing returns
Which law deals with a production function with all variable inputs in the long run?
Law of returns to scale
What is the modern approach to the laws of returns?
'The law of variable proportion'
What does the law of variable proportions explain?
Relationship between total product and marginal product
'The factors which can be easily increased or decreased are known as?'
Variable factors
What does the term 'production' refer to?
The process of transforming inputs into outputs
How can the production function be expressed?
Q = f (a, b, c, d…….n, T)
What are the factors of production?
Land, Labor, Capital
What is the aim of production?
To create or supply goods and services
What does the production function analyze?
The relationship between inputs and outputs
How is the state of technology represented in the production function?
T= state of technology
Test your knowledge on Unit 2 Production & Market with these notes compiled by Assistant Prof. Shilpa Shetti. Explore the concepts of production, market analysis, and production function explained in Chapter 4 of the course.
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