1. When marginal product (MP) & average product (AP) both falls

A) AP lies below MP
B) AP & MP intersect
C) MP Lies below AP
D) None of above



2. The rising part of the LAC curve is due to which of the following?

A) Economies of scale.
B) Diminishing returns.
C) The coordination problems in firm
D) Diseconomies of scale



3. Total Product, Marginal Product & Average Product for 1st unit of labor are

A) Identical
B) Different
C) Unable to be determined
D) None of above



4. The long run, as economists use the phrase, is characterized by:

A) At least one fixed factor of production.
B) The law of variable proportions
C) The law of Returns to scale
D) All inputs being fixed.



5. Slope of AR curve in the context of monopolistic competition is-

A) Perfectly elastic
B) Relatively elastic
C) Unitary elastic
D) Relatively inelastic