Question

Q.1.7 The slope of the short-run total product curve is used to derive the (a) average product of labour; (b) average product of capital; (c) marginal product of labour; (d) average cost of labour; Q.1.8 Which one of the following statements relating to production costs is INCORRECT? (a) The user cost of capital is made up of profit + interest rate; (b) When a firm experiences decreasing returns to scale, the change in output is smaller than the change in inputs; (c) The user cost of capital is made up of interest rate + economic depreciation. (d) The cost minimising position of a firm can be represented as ( -frac{Delta K}{Delta L}=frac{w}{r} ) Q.1.9 The total cost function for a firm is given as TC = 2200 + 10q. Which one of the following statements regarding this cost function is correct? (a) When the firm produces 100 units its total variable cost will be 3200. (b) The average total cost when 150 units are produced is R20. (c) The marginal cost of the last unit when the firm produces 152 units is R10. (d) The total cost of producing 152 units is R1520. Q.1.10 Which one of the following statements relating to economies of scope is correct? (a) The joint output of a single firm is greater than the output that could be achieved by two different firms each producing a single product. (b) Economies of scope are the same as economies of scale. (c) When a firm experiences diseconomies of scale it will not experience economies of scope. (d) The joint output of a single firm is less than could be achieved when each produces a single product.

          Q.1.7 The slope of the short-run total product curve is used to derive the
(a) average product of labour;
(b) average product of capital;
(c) marginal product of labour;
(d) average cost of labour;

Q.1.8 Which one of the following statements relating to production costs is INCORRECT?
(a) The user cost of capital is made up of profit + interest rate;
(b) When a firm experiences decreasing returns to scale, the change in output is smaller than the change in inputs;
(c) The user cost of capital is made up of interest rate + economic depreciation.
(d) The cost minimising position of a firm can be represented as ( -frac{Delta K}{Delta L}=frac{w}{r} )

Q.1.9 The total cost function for a firm is given as TC = 2200 + 10q. Which one of the following statements regarding this cost function is correct?
(a) When the firm produces 100 units its total variable cost will be 3200.
(b) The average total cost when 150 units are produced is R20.
(c) The marginal cost of the last unit when the firm produces 152 units is R10.
(d) The total cost of producing 152 units is R1520.

Q.1.10 Which one of the following statements relating to economies of scope is correct?
(a) The joint output of a single firm is greater than the output that could be achieved by two different firms each producing a single product.
(b) Economies of scope are the same as economies of scale.
(c) When a firm experiences diseconomies of scale it will not experience economies of scope.
(d) The joint output of a single firm is less than could be achieved when each produces a single product.

$Q.1.7 The slope of the short-run total product curve is used to derive the (a) average product of labour; (b) average product of capital; (c) marginal product of labour; (d) average cost of labour; Q.1.8 Which one of the following statements relating to production costs is INCORRECT? (a) The user cost of capital is made up of profit + interest rate; (b) When a firm experiences decreasing returns to scale, the change in output is smaller than the change in inputs; (c) The user cost of capital is made up of interest rate + economic depreciation. (d) The cost minimising position of a firm can be represented as ( -fracDelta KDelta L=fracwr ) Q.1.9 The total cost function for a firm is given as TC = 2200 + 10q. Which one of the following statements regarding this cost function is correct? (a) When the firm produces 100 units its total variable cost will be 3200. (b) The average total cost when 150 units are produced is R20. (c) The marginal cost of the last unit when the firm produces 152 units is R10. (d) The total cost of producing 152 units is R1520. Q.1.10 Which one of the following statements relating to economies of scope is correct? (a) The joint output of a single firm is greater than the output that could be achieved by two different firms each producing a single product. (b) Economies of scope are the same as economies of scale. (c) When a firm experiences diseconomies of scale it will not experience economies of scope. (d) The joint output of a single firm is less than could be achieved when each produces a single product.$

Added by Krikor N.

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