Question 1

The law of diminishing marginal returns is obvious because,if it didn't hold,it would be possible to:

Accepted Answer

A)  feed everyone in the world by intensively cultivating one acre of land. 
B)  manufacture all of the cars in the world using just one of the world's existing factories. 
C)  increase total output of a product without employing additional inputs. 
D)  All of the above. 
E)  a and b. 
A)  feed everyone in the world by intensively cultivating one acre of land. 
B)  manufacture all of the cars in the world using just one of the world's existing factories. 
C)  increase total output of a product without employing additional inputs. 
D)  All of the above. 
E)  a and b.

Question 2

The optimal combination of two inputs,K and L,can be characterized by:

Accepted Answer

A)  PKMPK = PLMPL. 
B)  MPK = MPL. 
C)  PLMPK = PKMPL. 
D)  MPK /MPL = PL /PK. 
E)  none of the above. 
A)  PKMPK = PLMPL. 
B)  MPK = MPL. 
C)  PLMPK = PKMPL. 
D)  MPK /MPL = PL /PK. 
E)  none of the above.

Question 3

Diminishing marginal returns:

Accepted Answer

A)  imply decreasing returns to scale. 
B)  occur at all combinations of input usage. 
C)  occur only for labor. 
D)  are consistent with increasing returns to scale. 
E)  are inconsistent with increasing returns to scale. 
A)  imply decreasing returns to scale. 
B)  occur at all combinations of input usage. 
C)  occur only for labor. 
D)  are consistent with increasing returns to scale. 
E)  are inconsistent with increasing returns to scale.

Question 4

If output is produced according to Q = K1/2 + 3L1/2,then this production process exhibits:

Accepted Answer

A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  first increasing and then decreasing returns to scale. 
D)  constant returns to scale. 
E)  first decreasing and then increasing returns to scale. 
A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  first increasing and then decreasing returns to scale. 
D)  constant returns to scale. 
E)  first decreasing and then increasing returns to scale.

The law of diminishing marginal returns is obvious because,if it didn't hold,it would be possible to:

The optimal combination of two inputs,K and L,can be characterized by:

Diminishing marginal returns:

If output is produced according to Q = K^1/2 + 3L^1/2,then this production process exhibits:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Exam 5: Production Theory

The law of diminishing marginal returns is obvious because,if it didn't hold,it would be possible to:

The optimal combination of two inputs,K and L,can be characterized by:

Diminishing marginal returns:

If output is produced according to Q = K1/2 + 3L1/2,then this production process exhibits:

Introduction

Demand Theory

Consumer Behavior and Rational Choice

Estimating Demand Functions

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

If output is produced according to Q = K^1/2 + 3L^1/2,then this production process exhibits: