Exam 3: Technology and Production

Suppose that the marginal product of a firm's labour is 10 units of output per hour. Also assume that the marginal product of the firm's capital is 30 units of output per hour. In this case, the marginal rate of technical substitution for labour with capital is

A firm's _______ shows the amount of output a firm can produce from given amounts of inputs using efficient production methods.

Suppose that a firm uses both labour (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 5?L?K. If the firm has 100 units of capital, what is its short-run production function?

When labour inputs are finely divisible, the average product of labour curve is ______ sloping at L if the marginal product is ______ the average product.

The productivity changes resulting from research and development would be best represented by

Which of the following statements regarding comparisons of productivity across two firms is true?

Two inputs ______ when they must be combined in a fixed ratio.

-Refer to Figure above. Which graph represents decreasing returns to scale?

Suppose a firm uses both labour (L) and capital (K) and its long-run production function is given by the expression Q = F(L,K) = L2√(L + 2K). The firm currently uses 100 units of capital. Assuming labour is finely divisible, graph the firm's short-run production function for the first five workers.

Which of the following is NOT a property of isoquants?

Which of the following is the formula for the average product of labour?

-Refer to Figure above. Which diagram represents isoquants for fixed-proportions technology?

Suppose a firm uses both labour (L) and capital (K) and its long-run production function is given by the expression Q = F(L,K) = 2L√(L + K). The firm currently uses 10 units of capital. Complete the following table: