Exam 5: Production

-The above figure shows the isoquants for producing steel. When producing less than 10,000 tons there are

Explain the difference between diminishing returns to labor and diminishing marginal returns to labor.

If production function q1 = f(L,K), which of the following production functions illustrates neutral technical progress?

If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant, then

-According to the table above, clothing production exhibits

A firm that engages in efficient production

If a Cobb-Douglas production function has alpha = 0.34 and beta = 0.42, then a 1% increase in inputs results in a ________ change in output.

The law of diminishing marginal returns

Decreasing returns to scale may occur because increasing the amount of inputs used

-The above figure shows the isoquants for producing steel. When producing between 10,000 and 20,000 tons there are

With capital on the vertical axis and labor on the horizontal axis, vertical isoquants imply that

Which of the following is likely to have the shortest long run?

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

A production function tells the firm

Average product will fall as long as

Given the production function q = 4L + K, what is the marginal product of labor when capital is fixed at 50?

Show that increasing returns to scale can co-exist with diminishing marginal productivity.

If marginal productivity is decreasing as more labor is hired, then average productivity must be decreasing as well.

The steeper an isoquant is

-The above figure shows the isoquants for producing steel. Increasing returns to scale are