The production function states that
Tap an option to check your answer.
4 marks, −1MicroeconomicsProduction and returns to scaleProduction function, marginal and average productModerateabout 1 min
CUET-PG 2020 Question 56: Production and returns to scale
Answer and worked solution
Checking your account…
Plain-text version
The production function Y = F(K, L) states that (A) If K rises, L also needs to rise (B) If K rises, L needs to decrease (C) Only if K and L both rise does Y rise as well (D) None of the statements is true
Production and returns to scale has come up 92 times in 6 exams since 2007.
What this question tests
This question is on Production function, marginal and average product, part of Production and returns to scale in Microeconomics.
How output depends on inputs, and the law of diminishing returns to a variable factor.
TestStop has 16 past-paper questions on this subtopic.
Similar questions from other papers
- Given below are two statements: Assertion A: There are increasing return to scale, if output become more than doubles when inputs are doubled. Reason R: Large scale of…
- Identify the CORRECT relationship(s) between the average product of labour (AP_L) and marginal product of labour (MP_L) in the short-run.
- In Cobb-Douglas production function Q = A x₁^α · x₂^β · u; A denotes here:
- Assuming that the production function is homogeneous of degree one and Euler's equation holds, if MP_L (marginal product of labour) is greater than AP_L (average…
- For a Cobb-Douglas production function with two inputs, Q = AK^αL^β where A > 0 and α, β > 0, the marginal products are: A. MP_K = α/KQ B. MP_K = β/KQ C. MP_L = α/LQ D
Question from the CUET-PG 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.