2)The Average Product (AP) rises as long as

A) The marginal product is greater than AP

B) The marginal product is less than AP

C) The marginal product equals AP

D) None of the above is correct

3)In production theory, the long run is the length of time necessary to maximize production.

Select one:

True

False

5) When labour is the variable input, in Stage 2

A)The marginal product of labour is negative and declining

B) The marginal product of labour is positive and increasing

C) the marginal product of labour is positive and declining

D) The marginal product of labour is negative and increasing

6) When labour is the variable input in Stage 2, the marginal product of labour is positive and increasing.

Select one:

True

False

7) A U-shaped average cost curve indicates the presence of

A) decreasing and then increasing returns to scale

B) increasing and then decreasing returns to scale

C) Inefficient production

D) None of the above answer is correct

8) If Total Cost (TC) is given by 10 - Q + 0.3Q2 (zero point three Q squared) and Q = 10, then average total cost is 3.

Select one:

True

False

9) If total Cost is given by TC = 10Q - Q2 + 0.3Q3 ( Ten Q minus Q squared plus zero point three Q cubed), then average total cost is at a minimum when

A) Q = 0.5

B) Q = 3.33

C) Q = 2.4

D) Q = 1.67

10) If Total Cost is given by 10Q - Q2 + 0.3Q3 ( Ten Q minus Q squared plus zero point three Q cubed) then average total cost is at a minimum when Q = 3.3

Select one:

True

False

11)Average costs exceeds marginal cost only at output rates where

A) average cost is decreasing

B)average cost is at a minimum

C) marginal cost is increasing

D) average cost is increasing

12) Total product is maximized when

A)average product is at a maximum

B) average product and marginal products intersect

C) Marginal product is at its maximum

D) None of the above is correct

13) Total product is maximized when marginal product equals zero.

Select one:

True

False

14) Diminishing returns is a concept involving proportionate changes in all inputs.

Select one:

True

False

* no explanation needed*