Practice Returns To Scale (3.6) - Production and Costs - CBSE 12 Introductory Microeconomics

Practice: Returns to Scale

Lesson 3.6Production and Costs

Practise this section

8 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What does constant returns to scale mean?
Show hintHide hint
Think about what happens when resources are increased equally.
Question 2.
What does decreasing returns to scale indicate?
Show hintHide hint
Try to visualize what happens when you add one more resource.
3Question 3.
What indicates increasing returns to scale?
- Output increases by a lesser proportion than inputs
- Output increases by a greater proportion than inputs
- Output remains the same as inputs are doubled
Show hintHide hint
Consider what happens when inputs grow faster than the outputs.
4Question 4.
True or False: Constant returns to scale leads to halved outputs when inputs are doubled.
- True
- False
Show hintHide hint
Reflect on the definitions of returns to scale.
Question 5.
A company doubles the number of machines and workers, with outputs escalating to 150% of the previous yield. Determine the type of returns it is experiencing.
Show hintHide hint
Focus on the ratio of input increase to output growth.
Question 6.
A farm increases its size and labor force, doubling them, but yield increases by only 70%. Categorize the return to scale.
Show hintHide hint
Analyze the impact of increased factors on final yield.

4 more questions in this section. Enroll free to practise them all.