A firm achieves least cost in production by substituting factors until
Their factor prices are equal
Their marginal-physical products are each equal to their factor prices
Their marginal-physical products are each zero
The ratio of their marginal-physical products equals the ratio of their prices
Correct answer is C
No explanation has been provided for this answer.
An imperfectly competitive market is one where
A large number of firms sell homogenous products
Input and output prices are unaffected
Each firm faces a horizontal demand curve
Each firm maximize profit by selecting an output level
Commodities are differentiated
Correct answer is E
No explanation has been provided for this answer.
Production in Economics can be defined as the
Totality of producing, buying and consuming
Transformation of raw materials and services in order to provide ultimate utility
Transformation of raw materials and services in order to make maximum profit
Production of goods and services for consumption
Correct answer is D
No explanation has been provided for this answer.
The degree of specialization is limited by the
Avalibility of specialized skills and machinery
Marginnal cost exceeding marginal revenue
Extent of the market
Disadvantage of standardization
Correct answer is A
No explanation has been provided for this answer.
A firm is at its optimum size when?
It produce the greatest output at a minimum cost
It has a motive to increase output
Marginal cost equals marginal revenue
Marginal cost is less than marginal revenue
Correct answer is A
No explanation has been provided for this answer.