You have completed your quiz attempt. You have scored 10 point(s).

Question Results
Score 1.00 of 1

1. The production function is an equation that shows the output that can be
produced from different combinations of inputs.
True

False
Score 1.00 of 1

2. Fixed inputs are those that cannot be changed in short run.

True

False
Score 1.00 of 1

3. All inputs are variable in the long run.

True

False
Score 1.00 of 1

4. All inputs are fixed in the short run.

True
False

Score 1.00 of 1

5. The law of diminishing returns is a long-run concept.

True
False

Score 1.00 of 1

6. If a firm is employing a combination of inputs that is on its expansion

path, then it must be maximizing profits.
True

False
Score 1.00 of 1

7. If the price of an input increases, then the firm will use more of it.
True
False

Score 1.00 of 1

8. If a firm is experiencing increasing returns to scale, then a

doubling of output will require more than a doubling of all inputs.
True
False

Score 1.00 of 1

9. Decreasing returns to scale arise because of increased

specialization and division of labor at higher levels of output.
True
False

Score 1.00 of 1

10. Most firms operate at a level of output that results in constant

returns to scale.
True

False