Returns to Scale refers to changes in production that occur when all resources are proportionately changed in the long run. It comes in three forms-increasing, decreasing, or constant based on whether the changes in production are proportionally more than, less than, or equal to the proportional changes in inputs. It is the guiding principle for long-run production, playing a similar role that the law of diminishing marginal returns plays for short-run production.

Correct Option: D

Returns to Scale refers to changes in production that occur when all resources are proportionately changed in the long run. It comes in three forms-increasing, decreasing, or constant based on whether the changes in production are proportionally more than, less than, or equal to the proportional changes in inputs. It is the guiding principle for long-run production, playing a similar role that the law of diminishing marginal returns plays for short-run production.

Adam Smith, a Scottish moral philosopher and a pioneer of political economy, is cited as the “father of modern economics.” He is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The Wealth of Nations is considered as the first modern work of economics.

Correct Option: D

Adam Smith, a Scottish moral philosopher and a pioneer of political economy, is cited as the “father of modern economics.” He is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The Wealth of Nations is considered as the first modern work of economics.

Quasi-rent is a term in economics that describes certain types of returns to firms. It differs from pure economic rent in that it is a temporary phenomenon. It can arise from the barriers to entry that potential competitors face in the short run, such as the granting of patents or other legal protections for intellectual property by governments.

Correct Option: C

Quasi-rent is a term in economics that describes certain types of returns to firms. It differs from pure economic rent in that it is a temporary phenomenon. It can arise from the barriers to entry that potential competitors face in the short run, such as the granting of patents or other legal protections for intellectual property by governments.

In economics, factors of production are the inputs to the production process. There are three basic factors of production: land, labour, capital. The payment for use and the received income of a land owner is rent. The payment for someone else’s labor and all income received from one’s own labor is wages. The modern theory of rent is that it is the difference between the actual earning of a factor unit over its transfer earnings. So the Transfer earnings are the minimum payment required to keep a factor of production in its present use. It is also known as opportunity cost.

Correct Option: D

In economics, factors of production are the inputs to the production process. There are three basic factors of production: land, labour, capital. The payment for use and the received income of a land owner is rent. The payment for someone else’s labor and all income received from one’s own labor is wages. The modern theory of rent is that it is the difference between the actual earning of a factor unit over its transfer earnings. So the Transfer earnings are the minimum payment required to keep a factor of production in its present use. It is also known as opportunity cost.

There are two extreme forms of market structure: monopoly and, its opposite, perfect competition. Perfect competition is characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. A monopoly is a market structure in which there is only one producer/ seller for a product.

Correct Option: C

There are two extreme forms of market structure: monopoly and, its opposite, perfect competition. Perfect competition is characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. A monopoly is a market structure in which there is only one producer/ seller for a product.