Quiz Space

Managerial Economics · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 7: When average product is increasing in labor, marginal pro…

Question 7

+1 markOne correct option

When average product is increasing in labor, marginal product is less than average product.

  1. A

    True

  2. B

    False

Show answer

Correct answer

  • B

    False

See the whole paperTake it as a mock test

Question 7 of 24 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Managerial Economics 15 Mar 26). It carries 1 mark.

This question was also asked in

More questions from this paper

  1. Q1For the production function q = 4K1/2 + 4L
  2. Q2A firm can always trade three units of labour for one unit of capital and still keep output constant. The production te…
  3. Q3A firm finds that it requires exactly two full-time workers to operate each piece of machinery in the factory. The prod…
  4. Q4The marginal product of capital is defined as
  5. Q5If marginal costs equal average total costs
  6. Q6When average product is decreasing in labor, marginal product is greater than average product.
  7. Q8When average product APL is at a maximum, then marginal product is equal to average product
  8. Q9Figure question
  9. Q10If the firm is currently using 3 hours of machine time for each hour of labour time, is it minimizing its costs of prod…
  10. Q11If not, what will be the optimal combination of labour and capital.\ L =
  11. Q12If not, what will be the optimal combination of labour and capital.\ K =
  12. Q13The slope of the budget line is
  13. Q14Intercepts on the axis are
  14. Q15If keeping income unchanged, price of the coconut is halved, what will be the new slope of the budget line
  15. Q16New intercepts on the axis are
  16. Q17If income is halved keeping the original prices unchanged
  17. Q18The marginal product of labour in the production of chips is 50 kg chips per hour. The marginal rate of technical subst…
  18. Q19What is the company’s fixed cost?
  19. Q20If the company produced 100 units of goods, what would be its average variable cost? _
  20. Q21Your explicit costs include
  21. Q22Our implicit cost will be
  22. Q23Last week you purchased five large cases of Fritos for a customer who, as it turned out, did not accept delivery. You p…
  23. Q24Last week you purchased five large cases of Fritos for a customer who, as it turned out, did not accept delivery. You p…