QUESTION 23 The marginal product concept is 1. used to describe the relation bet
ID: 2439077 • Letter: Q
Question
QUESTION 23
The marginal product concept is
1.
used to describe the relation between output and variation in all inputs in a production function
2.
the change in output associated with a one-unit change in an individual factor
3.
total product divided by the number input units employed
4.
the complete output from a production system
QUESTION 24
Total product divided by the number of units of variable input employed equals
1.
average product
2.
marginal revenue product
3.
returns to scale
4.
marginal product
QUESTION 25
Marginal revenue product equals
1.
marginal revenue multiplied by marginal product
2.
marginal product multiplied by total revenue
3.
total revenue multiplied by total product
4.
marginal revenue multiplied by total product
QUESTION 26
The long-run is a period of time
1.
during which at least one input is variable
2.
during which at least one input is fixed
3.
sufficient to vary all inputs in the production process
4.
greater than one year
QUESTION 27
Marginal cost equals
1.
average variable cost at its maximum point
2.
the change in total fixed cost divided by the change in quantity
3.
the change in total variable cost divided by the change in quantity
4.
total cost divided by quantity
QUESTION 28
The unique characteristic of a firm in perfectly competitive market equilibrium is
1.
MR continues to decrease
2.
P > AC
3.
P > MR
4.
P = MC
QUESTION 29
The distinction between a firm and an industry does not exist in
1.
imperfectly ccompetitive markets
2.
Oligopoly
3.
monopoly
4.
perfect competition
QUESTION 30
In a perfectly competitive market
1.
sellers and buyers have perfect information
2.
entry and exit are difficult
3.
sellers produce similar, but not identical products
4.
each seller can affect the market price by changing output
1.
used to describe the relation between output and variation in all inputs in a production function
2.
the change in output associated with a one-unit change in an individual factor
3.
total product divided by the number input units employed
4.
the complete output from a production system
Explanation / Answer
23. The marginal product concept is the change in output associated with a one unit change in an individual factor. Marginal product = Change in output / change in factor input unit .Hence, option(2) is correct.
24. Total product divided by the number of units of variable input employed equals average product. Average product = TP/ Total number of units of variable input . Hence, option(1) is correct.
25. Marginal revenue product equals marginal revenue multiplied by marginal product. MRP=MR (MP). Hence, option(1) is correct.
26. The long run is a period of time sufficient to vary all inputs in the production process. Hence, option(3) is correct.
27. Marginal cost equals the change in total variable cost divided by the change in quantity . Hence, option(3) is correct.
28. Unique characteristic of a firm in perfectly competitive market equilibrium is P=MC. Hence. option(D) is correct.
29. The distinction between a firm and an industry doesn't exist in perfect competiton.
30. In perfectly competitive market sellers and buyers have perfect information . There is no assymetry of information . Hence, option(1) is correct.
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