Multiple Choice. Please pick a,b or c

1.Diminishing Marginal Returns relate to

(a) the rate of substitution of one input for another

(b) the rate of change of marginal physical product

(c) the change in average output in relation to a unit increase in the input

2. The costs that are influenced by output in the short run are

(a) total variable costs only

(b) total costs only

(c) total fixed costs only

(d) both total variables costs and total costs

3. MR.A gorws grape, and his business is in a perfectly demand curve. If he wish to increase revenue he should

(a) lower the price to sell more

(b) raise the price to make more per kg sold

(c) accept that there is no way of making profit

(d) produce more grape without altering the price