If in the long run all factor inputs are increased three times and the resulting output is four times as before, it is a case of:
Decreasing returns to scale
Variable returns to scale
Constant returns to scale
Increasing returns to scale
Correct Answer :
D. Increasing returns to scale
Related Questions
In economist the term invisible hand is refers to:
Hand of God
Market self regulating system
Hands of invisible people
Regulations of government
The cross-price elasticity of the demand for orange juice with respect to the price of apple juice is probably:
Negative
Positive
Near infinite
Zero
Excess capacity is not found under:
Monopoly
Monopolistic competition
Perfect competition
Oligopoly
When elasticity of demand is greater than one (e >1), then following the formula MR=P[1-1/e], the MR will:
Positive
Negative
Zero
None of the above
Traditionally, the study of determination of price is called:
Theory of price
Theory of value
Theory of labor
Theory of cost
In case of complementary factors, the isoquants are:
L-shaped
J-shaped
M-shaped
V-shaped
Identify the author of The Affluent Society?
Gunnar Myrdal
N.Kaldor
A.C.Pigou
J.K.Galbraith
The budget-line is also known as the:
Iso-utility curve
Production possibility line
Isoquant
Consumption possibility line
The good will highest income elasticity is:
Beef
Mutton
Bread
Motion-picture tickets
In perfect cartel, the:
Perfect competition price is charged
Monopoly price is charged
Monopoly price is not charged
None of the above
Increasing returns is not caused by:
Specialization of labor
Technological advancement
Marketing economics
Varying factor proportions
If the price of product A decreases and in the result the demand for product B increases then we can say that:
A and B are substitute goods
A and B are complementary goods
A is an inferior good
B is an inferior good
When the income of consumer increases then budget line will:
Get steeper
Shift parallel to right
To get flatter
To shift upward
Which cost increases continuously with the increase in production?
Average cost
Marginal cost
Fixed cost
Variable cost
The Hicksian indirect utility function in the form of equation is:
x =f(P)
x =a-bp
Change in demand (rise and fall of demand) is:
Due to change in price while other factors remain constant
Due to change in factors other than price
Both a and b
None of the above
In centralized cartel, the firms are like:
Price takers
Price setters
Price discriminators
None of the above
The Law of Equi-Marginal Utility refers to:
Marginal utility of commodity X
Marginal utility of commodity Y
Marginal utility per rupee spent on X and Y commodities
None of the above
Now-a-days in real life, we are unable to fined:
Monopoly
Perfect competition
Imperfect competition
Monopolistic competition
Robbins definition of economics was criticised by:
Alfred Marshal
Adam Smith
J.B.Clark
Hicks, Longe and Durbin
Duopoly is a market where there are:
Two sellers
A few sellers
Five sellers
Many sellers
In joint-profit maximization cartel, the distribution of profit is:
Made by agency
Not made by agency
Made by people
None of the above
If we measure the elasticity of demand with the help of the average and marginal revenue, the formula is:
Ed = AR/ (AR- MR)
Ed = MR/ (AR-MR)
Ed = AR/(MR-AR)
Ed = AR/ MR
The production function of homogeneous of degree one (n=1) is also called:
Linearly homogeneous
Zero homogeneous
Infinite homogeneous
None of the above
The non-price competition cartel is a:
stable cartel
unstable cartel
prominent cartel
special cartel
The cobweb model will divergent when the slope of:
Demand curve is more than supply curve
Supply curve is more than demand curve
Supply curve is equal to demand curve
None of the above
The utility function u = f(x) is based upon :
Two goods
Few goods
One good
Zero goods
When elasticity of demand is less than one (e<1), then following the formula MR=P[1-1/e], the MR will:
Positive
Negative
Zero
None of the above
In modern cost theory, AVC= b1 and MC= b1 in the range of:
Excess capacity
Reserve capacity
Limited capacity
None of the above
If the slope of the isoquant is equal to the slope of isocost, then isoquant is:
Concave to the origin
Convex to the origin
Tangent to the origin
None of the above