The Theory of Production Quiz

Transformation of inputs into outputs (correct)

Acquisition of raw materials

Marketing of goods and services

Distribution of final products

When one factor is increased, the marginal and average product increase indefinitely

When one factor is increased keeping others fixed, the marginal and average product eventually declines (correct)

When one factor is increased, all other factors increase proportionally

When one factor is increased, the total product remains constant

They decrease initially and then increase

They increase indefinitely when one factor is increased

They eventually decline when one factor is increased (correct)

They remain constant when one factor is increased

<p>The marginal and average product eventually declines</p> Signup and view all the answers

<p>Law of Diminishing Returns</p> Signup and view all the answers

<p>Transformation of inputs into outputs</p> Signup and view all the answers

<p>Increase in output to a point beyond which it eventually declines</p> Signup and view all the answers

<p>Three stages</p> Signup and view all the answers