Economics - Study Mode
[#986] Statement I The least-cost or optimal input combination of labour capital requires that the marginal revenue productivity ratio of the two inputs should be equal to their price ration. Statement II In a hypothetical production function of the following from Q = L 3 + 15L 2 + 10 Where Q = Quantity of the product and L = No. of variable input (labour) the marginal physical productivity of labour is L 2 + 15L + 10
Correct Answer
(D) Statement I is false, while Statement II is true
[#987] By what name, the modern theory of interest is known?
Correct Answer
(C) Hicks Henson's theory of interest
[#988] Match the following. List-I (Production functions) List-II (Name of the shapes of returns to scale) a. Q = 10.2K 0.19 L 0.88 1. Constant returns to scale b. Q = 1.01L 0.75 K 0.25 2. Diminishing returns to scale c. Q = 0.84L 0.63 K 0.3 3. Increasing returns to scale
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(B) a-2, b-1, c-3
[#989] Which of the following is a barrier to entry that typically results in a monopoly?
Correct Answer
(C) Production of the industry's product requires a large initial capital investment
[#990] If a firm triples input and produces twice the output, then there are
Correct Answer
(C) Decreasing returns to scale