Consider the following statements-<br>1. The increasing returns to scale imply that the marginal product of a variable factor will always increase.<br>2. The constant returns to scale imply that the marginal product of a variable factor will always diminish<br>3. Managerial diseconomies constitute an important cause of decreasing returns to scale<br>Which of these statements is/are correct?

Consider the following statements-
If all the factors of production are paid according to their respective marginal products, the total product would be
1. exhausted under constant returns to scale.
2. more than exhausted under increasing returns to scale
3. less than exhausted under decreasing return to scale
Which of these statements is/are correct?

A

1 only

B

1 and 2

C

2 and 3

D

1, 2 and 3

Assertion A): U-shaped long-run average cost curve is based on the assumption that economies of scale prevails at small levels of production and diseconomies of scale prevails at larger level of production. Reason R): Decreasing returns to scale arises primarily because as the scale of operation increases, it becomes even more difficult to manage the firm effectively. In the context of the above two statements, which one of the following codes is correct?

A

Both A) and R) are correct and R) is the right explanation of A)

B

Both A) and R) are correct and R) is not the right explanation of A)

C

A) is correct and R) is not incorrect

D

Both A) and R) are incorrect

Profits can be increased by
1. decreasing the selling price per unit.
2. increasing the selling price per unit.
3. decreasing the volume of sales.
4. increasing the volume of sales.
5. decreasing the fixed or variable expenses.
6. increasing the fixed or variable expenses.
7. giving more weightage for products having higher P/V ratio.
8. giving less weightage for products having higher P/V ratio.
Select the correct answer

A

1, 3, 5 and 7

B

2, 4, 6 and 8

C

2, 4, 5 and 7

D

1, 3, 6 and 8

Consider the following statements :
In the first zone of production function
1. The APP is increasing and then decreasing
2. The MPP is increasing and then decreasing
3. TPP is increasing
4. APP is decreasing
Which of the above statements are correct

A

1 and 2

B

2 and 3

C

1 and 4

D

None of these

Which of the following statements is not true with regard to Highways and Roads? (i) National Highways connect the state capitals, major cities, important ports, railway junctions, etc constitute about 1% of total road length in India. (ii) State Highways join the state capitals with district headquarters and other important towns constitute about 4% of total road length in India. (iii) District roads are the connecting link between District Headquarters and the other important nodes in the district and constitute about 14% of total road length in India. (iv) Rural roads are vital for providing links in rural areas and constitute about 80 per cent of the total road length in India

A

Only (ii)

B

Only (iii)

C

Only (iv)

D

None of the Above

The collection efficiency of cyclone separators increases with: 1) Decreasing particle size 2) Increasing particle density 3) Decreasing gas velocity 4) Increasing number of gas revolutions 5) Increasing cyclone diameter Which of the above statements are correct?

A

1, 3 and 4 only

B

2 and 4 only

C

2, 4 and 5 only

D

1, 2, 3, 4 and 5

Which of the following statements are true?
1. Marginal costing is not an independent system of costing.
2. In marginal costing, all fundamentals of cost are divided into fixed and variable components.
3. In marginal costing, fixed costs are treated as product cost.
4. Marginal costing is not a technique of cost analysis.

A

Both 4 and 1

B

Both 2 and 3

C

Both 1 and 2

D

Both 2 and 4

When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A

(a) and (b) statements

B

Only (c) statement

C

Only (a) statement

D

Only (b) statement

When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A

Both 1 and 2

B

Only 3

C

Only 1

D

Only 2

Consider the series - "animal, mammal, feline, tiger". Which of the following statement/s is/are true with reference to this series (A) It is in order of increasing intension (B) It is in order of increasing extension (C) It is in order of decreasing intension (D) It is in order of decreasing extension Choose the correct answer from the options given below :

A

Only (B) is correct

B

Only (B) and (C) are correct

C

Only (A) and (D) are correct

D

Only (C) is correct

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