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Producer Behaviour and Supply Quiz

Class XII
Economics
Producer Behaviour and Supply
10 questions
HARD

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1. What is the primary objective of a producer in the short run?

Maximize total revenue · Minimize costs · Maximize profit · Achieve market equilibrium

2. In the context of production, what does the term 'marginal product' refer to?

Total output produced · Additional output from one more unit of input · The average output per unit of input · Output produced in the long run

3. Which of the following is NOT a characteristic of the short run?

Some inputs are fixed · All inputs are variable · Production decisions are made quickly · Diminishing returns may occur

4. What is the law of variable proportions?

Output increases at a constant rate with input · Output eventually increases at a decreasing rate · Input must always be increased to increase output · Output decreases as input increases

5. What happens to total product when marginal product is zero?

Total product increases · Total product decreases · Total product remains constant · Total product becomes negative