Question 1

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

Accepted Answer

A)  6. 
B)  8. 
C)  24. 
D)  not known from the information provided. 
A)  6. 
B)  8. 
C)  24. 
D)  not known from the information provided.

Question 2

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

Accepted Answer

No.At low levels of production

Question 3

The nonprofit or not-for-profit sector consists of organizations that

Accepted Answer

A)  intend to earn a profit. 
B)  are always inefficient. 
C)  are primarily concerned with the welfare of their own employees. 
D)  typically pursue social or public interest objectives. 
A)  intend to earn a profit. 
B)  are always inefficient. 
C)  are primarily concerned with the welfare of their own employees. 
D)  typically pursue social or public interest objectives.

Question 4

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Accepted Answer

A)  29 
B)  30 
C)  31 
D)  Not known from the information provided. 
A)  29 
B)  30 
C)  31 
D)  Not known from the information provided.

Question 5

Which situation is most likely to exhibit diminishing marginal returns to labor?

Accepted Answer

A)  a factory that obtains a new machine for every new worker hired 
B)  a factory that hires more workers and never increases the amount of machinery 
C)  a factory that increases the amount of machinery and holds the number of worker constant 
D)  None of these situations will result in diminishing marginal returns to labor. 
A)  a factory that obtains a new machine for every new worker hired 
B)  a factory that hires more workers and never increases the amount of machinery 
C)  a factory that increases the amount of machinery and holds the number of worker constant 
D)  None of these situations will result in diminishing marginal returns to labor.

Question 6

Which of the following statements best describes a production function?

Accepted Answer

A)  the maximum profit generated from given levels of inputs 
B)  the maximum level of output generated from given levels of inputs 
C)  all levels of output that can be generated from given levels of inputs 
D)  all levels of inputs that could produce a given level of output 
A)  the maximum profit generated from given levels of inputs 
B)  the maximum level of output generated from given levels of inputs 
C)  all levels of output that can be generated from given levels of inputs 
D)  all levels of inputs that could produce a given level of output

Question 7

Suppose the production function for T-shirts can be represented as q = L0.25K0.75.Show that the isoquants for this function are convex.

Accepted Answer

The slope of the isoquant is -

Question 8

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?

Accepted Answer

A)  Joey's marginal productivity equals his average productivity. 
B)  Joey's marginal productivity diminishes by 0.2 for each additional hour worked. 
C)  Joey's average productivity is constant. 
D)  Joey's marginal productivity is constant. 
A)  Joey's marginal productivity equals his average productivity. 
B)  Joey's marginal productivity diminishes by 0.2 for each additional hour worked. 
C)  Joey's average productivity is constant. 
D)  Joey's marginal productivity is constant.

Question 9

Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4.The firm currently produces q1 units.If all inputs doubled,the new level of output will equal

Accepted Answer

A)  20.4 q1. 
B)  20.8 q1. 
C)  0.8 q1. 
D)  1.6 q1. 
A)  20.4 q1. 
B)  20.8 q1. 
C)  0.8 q1. 
D)  1.6 q1.

Question 10

-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 capital per day is on the vertical axis and labor per day is on the horizontal axis?

Accepted Answer

A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D 
A)  Graph A 
B)  Graph B 
C)  Graph C 
D)  Graph D

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

If the average productivity of labor equals the marginal productivity of labor,then

Accepted Answer

A)  the average productivity of labor is at a maximum. 
B)  the marginal productivity of labor is at a maximum. 
C)  Both A and B above. 
D)  Neither A nor B above. 
A)  the average productivity of labor is at a maximum. 
B)  the marginal productivity of labor is at a maximum. 
C)  Both A and B above. 
D)  Neither A nor B above.

Question 13

Suppose firms A and B each make T-shirts.Firm A's production function is q = L0.5K0.5.Firm B's production function is q = 1.2 ∗ L0.5K0.5.If the two firms each hire the same amounts of capital and labor,compare the two firms in terms of APL and MPL.

Accepted Answer

Firm B's AP_L and MP_L w

Question 14

Provide a graph and an explanation to show that the production function Q = L0.5K0.5 has diminishing marginal product of labor but has constant returns to scale.

Accepted Answer

@#IMG-DLM& See the above figure.The MP_L = .5 ∗ L^-0.5K^0.5 s

Question 15

Each additional worker produces two extra units of output until the first three units are produced for some production function.After the third unit is produced each additional worker produces one extra unit of output.What are the total product of labor,average product of labor and marginal product of labor for the first five units of production associated with this production function?

Accepted Answer

The answer of Each additional worker produces two extra units...

Question 16

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

Accepted Answer

A)  increases first and then decreases. 
B)  decreases first and then increases. 
C)  decreases throughout. 
D)  increases throughout. 
A)  increases first and then decreases. 
B)  decreases first and then increases. 
C)  decreases throughout. 
D)  increases throughout.

Question 17

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

Accepted Answer

A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  economies of scale. 
A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  economies of scale.

Question 18

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

Accepted Answer

A)  present when producing less than 10,000 tons. 
B)  present when producing between 10,000 and 20,000 tons. 
C)  present when producing more than 20,000 tons. 
D)  never present. 
A)  present when producing less than 10,000 tons. 
B)  present when producing between 10,000 and 20,000 tons. 
C)  present when producing more than 20,000 tons. 
D)  never present.

Question 19

If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor,the farmer has

Accepted Answer

A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  no returns to scale. 
A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  no returns to scale.

Question 20

Since 1999,the number of small state-owned enterprises (SOEs)in China has

Accepted Answer

A)  decreased, but the large SOEs continue to hold a large proportion of industrialized assets. 
B)  increased, but large SOEs has decreased. 
C)  decreased along with the large SOEs. 
D)  remained unchanged. 
A)  decreased, but the large SOEs continue to hold a large proportion of industrialized assets. 
B)  increased, but large SOEs has decreased. 
C)  decreased along with the large SOEs. 
D)  remained unchanged.

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

The nonprofit or not-for-profit sector consists of organizations that

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Which situation is most likely to exhibit diminishing marginal returns to labor?

Which of the following statements best describes a production function?

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75.Show that the isoquants for this function are convex.

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?

Suppose the production of mp3 players can be represented by the following production function: q = L^0.4K^0.4.The firm currently produces q₁ units.If all inputs doubled,the new level of output will equal

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

If the average productivity of labor equals the marginal productivity of labor,then

Suppose firms A and B each make T-shirts.Firm A's production function is q = L^0.5K^0.5.Firm B's production function is q = 1.2 ∗ L^0.5K^0.5.If the two firms each hire the same amounts of capital and labor,compare the two firms in terms of AP_L and MP_L.

Provide a graph and an explanation to show that the production function Q = L^0.5K^0.5 has diminishing marginal product of labor but has constant returns to scale.

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

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

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

If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor,the farmer has

Since 1999,the number of small state-owned enterprises (SOEs)in China has

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 6: Firms and Production

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

The nonprofit or not-for-profit sector consists of organizations that

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Which situation is most likely to exhibit diminishing marginal returns to labor?

Which of the following statements best describes a production function?

Suppose the production function for T-shirts can be represented as q = L0.25K0.75.Show that the isoquants for this function are convex.

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?

Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4.The firm currently produces q1 units.If all inputs doubled,the new level of output will equal

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

If the average productivity of labor equals the marginal productivity of labor,then

Suppose firms A and B each make T-shirts.Firm A's production function is q = L0.5K0.5.Firm B's production function is q = 1.2 ∗ L0.5K0.5.If the two firms each hire the same amounts of capital and labor,compare the two firms in terms of APL and MPL.

Provide a graph and an explanation to show that the production function Q = L0.5K0.5 has diminishing marginal product of labor but has constant returns to scale.

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

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

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

If a farmer produces 1000 bushels of corn using ten acres of land and one tractor and is able to produce 2000 bushels of corn using twenty acres of land and one tractor,the farmer has

Since 1999,the number of small state-owned enterprises (SOEs)in China has

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75.Show that the isoquants for this function are convex.

Suppose the production of mp3 players can be represented by the following production function: q = L^0.4K^0.4.The firm currently produces q₁ units.If all inputs doubled,the new level of output will equal

Suppose firms A and B each make T-shirts.Firm A's production function is q = L^0.5K^0.5.Firm B's production function is q = 1.2 ∗ L^0.5K^0.5.If the two firms each hire the same amounts of capital and labor,compare the two firms in terms of AP_L and MP_L.

Provide a graph and an explanation to show that the production function Q = L^0.5K^0.5 has diminishing marginal product of labor but has constant returns to scale.