Production Economics Quiz Form
Please complete all questions below to the best of your knowledge. This quiz covers key topics in production economics.
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Which of the following best describes the Law of Diminishing Returns?
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As more units of a variable input are added to fixed inputs, output increases at a decreasing rate.
Output increases at an increasing rate as all inputs increase.
Total cost decreases as production increases.
Other
A production function shows the relationship between which variables?
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Inputs and outputs
Costs and revenues
Profits and losses
Other
Which of the following are variable costs? (Select all that apply)
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Raw materials
Wages for hourly workers
Factory rent
Utilities used in production
Other
Calculate the marginal product if total output increases from 100 to 120 units when one more worker is added.
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Match the production concept with its correct definition.
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Rows
Definition
Total Product
Total Product: Total output produced
Average Product: Output per unit of input
Marginal Product: Additional output from one more unit of input
Average Product
Total Product: Total output produced
Average Product: Output per unit of input
Marginal Product: Additional output from one more unit of input
Marginal Product
Total Product: Total output produced
Average Product: Output per unit of input
Marginal Product: Additional output from one more unit of input
Which of the following best describes economies of scale?
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Decreasing average cost as output increases
Increasing average cost as output increases
Constant average cost regardless of output
Other
Briefly explain the difference between fixed costs and variable costs.
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State one example of a production input that is typically considered fixed in the short run.
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