Exam 5: Production

-The table in the above figure shows the levels of output resulting from different levels of inputs. At which level of input are there constant returns to scale?

Jennifer is the only employee of her sole proprietorship. She is entertaining the idea of hiring an additional employee. She knows that on her own she can produce 100 units per day. Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day. Which of the following statements is MOST accurate?

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both. Each minute of the instructor's time delivers the same amount of information as a minute of the movie. Which graph in the above figure best represents the isoquants for lectures in microeconomics when units of capital per day is on the vertical axis and units of labor per day is on the horizontal axis?

Which of the following is NOT an output of the production function?

-The above figure shows the isoquants for producing steel. When producing more than 20,000 tons there are

Let the production function be q=ALaKb. The function exhibits decreasing returns to scale if

The slope of an isoquant

Given the production function q = 4LK, what is the marginal product of labor when capital is fixed at 25?

-The above table shows a short-run production function for Albert's Pretzels. The marginal product of labor

-The above table shows the short-run production function for Albert's Pretzels. The marginal product of labor for the third worker is

The use of robots in agriculture is an example of

Suppose that additional units of capital affect the marginal productivity of labor. This is not unrealistic. Word processors increase the marginal productivity of secretaries. On the other hand, robotic equipment can completely replace a worker and, thereby, lower the marginal productivity of labor. Given this possibility, determine the conditions under which isoquants will not be convex (i.e.: concave).

All of the following are considered process innovation EXCEPT

Joey cuts lawns during the summer. Let q equal the number of acres mowed per day, and let L equal the number of hours worked per day. Joey never works more than eight hours per day, and during that time his short-run production function is q = 0.2 ∗ L. Which of the following statements is FALSE?

Joey's lawncutting service recently traded in its push mowers for gasoline-powered mowers. Joey still requires one worker per lawnmower; however, more grass is now cut in the same amount of time as before. This is an example of

-According to the table above, transportation equipment production exhibits

-The table in the above figure shows the levels of output resulting from different levels of inputs. Which of the following conclusions can be drawn from this information?

Cobb-Douglas production functions can never possess varying returns to scale.

If you are running a winery and you need one bottle for every 750ml of wine, then your production function

The Average Product of Labor is