ECON 528 FINAL EXAM
ADHIKARI UL MBA
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
increasing - ANS-If the doubling of all inputs more than doubles that means the
product process exhibits _______________ returns to scale
constant - ANS-If the doubling of all inputs doubles that means the product process
exhibits _______________ returns to scale
decreasing - ANS-If the doubling of all inputs less than doubles that means the product
process exhibits _______________ returns to scale
decreasing - ANS-If the average cost increases as output expands, the production
process has _________________ returns to scale
constant - ANS-If the average cost remains constant as output expands, the production
process has _________________ returns to scale
increasing - ANS-If the average cost decreases as output expands, the production
process has _________________ returns to scale
fixed cost - ANS-cost associated with fixed input
, fixed costs - ANS-unrelated to output
zero - ANS-fixed costs are __________ in the long run
a unit change in one input - ANS-Marginal product is the change in output associated
with _________________________
MP = 0 - ANS-total product is maximized when _________________
sunk cost - ANS-the cost that does not vary across decision
short run - ANS-the time period in which the availability of at least one input is fixed
or the quantity of at least one input cannot be changed
long run - ANS-the time period in which the availability of all inputs can change or the
quantity of all inputs can be changed
less - ANS-a firm has increasing returns to scale in its production processes if its cost
elasticity is ___________ than one
greater - ANS-a firm has decreasing returns to scale in its production processes if its
cost elasticity is ___________ than one
equal to - ANS-a firm has constant returns to scale in its production processes if its
cost elasticity is ___________ one
implicit - ANS-non cash expenses are _______________ costs
sunk costs - ANS-In the decision process, management should ignore
________________________
ADHIKARI UL MBA
QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
increasing - ANS-If the doubling of all inputs more than doubles that means the
product process exhibits _______________ returns to scale
constant - ANS-If the doubling of all inputs doubles that means the product process
exhibits _______________ returns to scale
decreasing - ANS-If the doubling of all inputs less than doubles that means the product
process exhibits _______________ returns to scale
decreasing - ANS-If the average cost increases as output expands, the production
process has _________________ returns to scale
constant - ANS-If the average cost remains constant as output expands, the production
process has _________________ returns to scale
increasing - ANS-If the average cost decreases as output expands, the production
process has _________________ returns to scale
fixed cost - ANS-cost associated with fixed input
, fixed costs - ANS-unrelated to output
zero - ANS-fixed costs are __________ in the long run
a unit change in one input - ANS-Marginal product is the change in output associated
with _________________________
MP = 0 - ANS-total product is maximized when _________________
sunk cost - ANS-the cost that does not vary across decision
short run - ANS-the time period in which the availability of at least one input is fixed
or the quantity of at least one input cannot be changed
long run - ANS-the time period in which the availability of all inputs can change or the
quantity of all inputs can be changed
less - ANS-a firm has increasing returns to scale in its production processes if its cost
elasticity is ___________ than one
greater - ANS-a firm has decreasing returns to scale in its production processes if its
cost elasticity is ___________ than one
equal to - ANS-a firm has constant returns to scale in its production processes if its
cost elasticity is ___________ one
implicit - ANS-non cash expenses are _______________ costs
sunk costs - ANS-In the decision process, management should ignore
________________________
