4: Production, Costs And Revenue

Question 1

What is productivity

Answer 1

It is output per unit of input

Question 2

What is labour productivity

Answer 2

Output per worker

Question 3

What is capital productivity

Answer 3

Output per unit of capital

Question 4

What is division of labour

Answer 4

This is the concept which goes hand in hands with specialisation.different worker perform different tasks in the course of producing a good or service.

Question 5

What’s law does diminishing marginal returns aka law of diminishing marginal productivity

Answer 5

It is a short-term law which states that as a variable factor of production both m

Question 6

What is return to scale

Answer 6

It is the rate by which output changes if the scale of all the factors of production is changed

Question 7

What is in increasing returns to scale

Answer 7

It is when the scale of all the factors of production employed increases, output increases at a faster rate.

Question 8

What is constant returns to scale

Answer 8

It is when the scale of all the factors of production employed increases, output increases at the same rate

Question 9

What is decreasing returns to scale

Answer 9

It is when the scale of all the factors of production employed increases, output increases at a slower rate.