Question 1

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

Accepted Answer

A)  present when producing more than 10,000 tons. 
B)  present when producing more than 20,000 tons. 
C)  present when producing more than 30,000 tons. 
D)  never present. 
A)  present when producing more than 10,000 tons. 
B)  present when producing more than 20,000 tons. 
C)  present when producing more than 30,000 tons. 
D)  never present.

Question 2

How much capital does a firm require to produce q = 3200 when labor is 4 and they have a production function equal to q = 200L0.5K0.5?

Accepted Answer

A)  K = 64 
B)  K = 8 
C)  K = 16 
D)  K = 25 
A)  K = 64 
B)  K = 8 
C)  K = 16 
D)  K = 25

Question 3

Production occurs using the fixed-proportion combination of one worker for every one unit of capital.Draw the isoquants for this production function.After one unit of output is produced,does this production function exhibit constant,increasing,or decreasing returns to scale?

Accepted Answer

@#IMG-DLM& See the above figur

Question 4

One way to explain the convexity of isoquants is to say that

Accepted Answer

A)  as labor increases and capital decreases, MPL rises while MPK falls. 
B)  as labor increases and capital decreases, MPL falls while MPK rises. 
C)  as labor increases and capital decreases, MPL and MPK both fall. 
D)  as labor increases and capital decreases, MPL and MPK both rise. 
A)  as labor increases and capital decreases, MPL rises while MPK falls. 
B)  as labor increases and capital decreases, MPL falls while MPK rises. 
C)  as labor increases and capital decreases, MPL and MPK both fall. 
D)  as labor increases and capital decreases, MPL and MPK both rise.

Question 5

Technical and organizational change

Accepted Answer

A)  typically reduces prices by increasing the supply of the product, ceteris paribus. 
B)  typically reduces prices by decreasing the demand for the product, ceteris paribus. 
C)  typically increases prices by increasing the demand for the product, ceteris paribus. 
D)  typically increases prices by decreasing the supply for the product, ceteris paribus. 
A)  typically reduces prices by increasing the supply of the product, ceteris paribus. 
B)  typically reduces prices by decreasing the demand for the product, ceteris paribus. 
C)  typically increases prices by increasing the demand for the product, ceteris paribus. 
D)  typically increases prices by decreasing the supply for the product, ceteris paribus.

Question 6

If the marginal productivity of labor is constant for all levels of output,then the average productivity of labor

Accepted Answer

A)  is constant. 
B)  equals the marginal productivity of labor. 
C)  Both A and B above. 
D)  Either A or B above but not both. 
A)  is constant. 
B)  equals the marginal productivity of labor. 
C)  Both A and B above. 
D)  Either A or B above but not both.

Question 7

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

Accepted Answer

The production function below illustrate

Question 8

A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital.The firm's production function exhibits constant returns to scale.How many units of labor and capital are needed to produce 350 widgets?

Accepted Answer

A)  L = 14; K = 42 
B)  L = 15; K = 45 
C)  L = 14; K = 44 
D)  L = 15; K = 42 
A)  L = 14; K = 42 
B)  L = 15; K = 45 
C)  L = 14; K = 44 
D)  L = 15; K = 42

Question 9

Skateboards are produced according to the production function,q = 10K0.25L0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Accepted Answer

A)  L = 100 
B)  L = 10 
C)  L = 5 
D)  Not enough information is given. 
A)  L = 100 
B)  L = 10 
C)  L = 5 
D)  Not enough information is given.

Question 10

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

Accepted Answer

AP = Q(L)/L.dAP/dL = ([L ∗ MP]

Question 11

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal productivity of labor

Accepted Answer

A)  rises then falls as the amount of capital increases. 
B)  falls then rises as the amount of labor increases. 
C)  is greater than or equal to the average productivity of labor for all amounts of labor. 
D)  is less than or equal to the average productivity of labor for all amounts of labor. 
A)  rises then falls as the amount of capital increases. 
B)  falls then rises as the amount of labor increases. 
C)  is greater than or equal to the average productivity of labor for all amounts of labor. 
D)  is less than or equal to the average productivity of labor for all amounts of labor.

Question 12

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

Accepted Answer

A)  for all levels of labor. 
B)  at none of the levels of labor. 
C)  only for the first worker. 
D)  only for the fifth worker. 
A)  for all levels of labor. 
B)  at none of the levels of labor. 
C)  only for the first worker. 
D)  only for the fifth worker.

Question 13

-Which graph in the above figure represents the isoquants where,as the amount of labor used increases and the amount of capital used decreases,the marginal product of labor rises 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 14

Total Product is

Accepted Answer

A)  the change in total product resulting from an extra unit of labor, holding other factors constant. 
B)  the ratio of output to the number of workers used to produce that output. 
C)  the amount of output that can be produced by a given amount of labor. 
D)  equal to the marginal product of labor when the average product is increasing. 
A)  the change in total product resulting from an extra unit of labor, holding other factors constant. 
B)  the ratio of output to the number of workers used to produce that output. 
C)  the amount of output that can be produced by a given amount of labor. 
D)  equal to the marginal product of labor when the average product is increasing.

Question 15

The Marginal Product of Labor is

Accepted Answer

A)  the change in total product resulting from an extra unit of labor, holding other factors constant. 
B)  the ratio of output to the number of workers used to produce that output. 
C)  the amount of output that can be produced by a given amount of labor. 
D)  equal to the marginal product of labor when the average product is increasing. 
A)  the change in total product resulting from an extra unit of labor, holding other factors constant. 
B)  the ratio of output to the number of workers used to produce that output. 
C)  the amount of output that can be produced by a given amount of labor. 
D)  equal to the marginal product of labor when the average product is increasing.

Question 16

In China,firms owned by the government are known as

Accepted Answer

A)  state-owned enterprises (SOEs). 
B)  government enterprises. 
C)  corporations. 
D)  government owned partnerships. 
A)  state-owned enterprises (SOEs). 
B)  government enterprises. 
C)  corporations. 
D)  government owned partnerships.

Question 17

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

Accepted Answer

A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given. A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.

Question 18

Technological efficiency is

Accepted Answer

A)  a necessary and sufficient condition for profit maximization. 
B)  a sufficient but not necessary condition for profit maximization. 
C)  a necessary but not sufficient condition for profit maximization. 
D)  a theoretical construct with little connection to the real world. 
A)  a necessary and sufficient condition for profit maximization. 
B)  a sufficient but not necessary condition for profit maximization. 
C)  a necessary but not sufficient condition for profit maximization. 
D)  a theoretical construct with little connection to the real world.

Question 19

An organization that converts inputs (like Labor,Capital etc.)into output can be a

Accepted Answer

A)  firm. 
B)  sole proprietorship. 
C)  corporation. 
D)  All of the above. 
A)  firm. 
B)  sole proprietorship. 
C)  corporation. 
D)  All of the above.

Question 20

Only corporations benefit from limited liability.

Accepted Answer

A) True 
 B)False

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

How much capital does a firm require to produce q = 3200 when labor is 4 and they have a production function equal to q = 200L^0.5K^0.5?

Production occurs using the fixed-proportion combination of one worker for every one unit of capital.Draw the isoquants for this production function.After one unit of output is produced,does this production function exhibit constant,increasing,or decreasing returns to scale?

One way to explain the convexity of isoquants is to say that

Technical and organizational change

If the marginal productivity of labor is constant for all levels of output,then the average productivity of labor

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

A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital.The firm's production function exhibits constant returns to scale.How many units of labor and capital are needed to produce 350 widgets?

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal productivity of labor

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

-Which graph in the above figure represents the isoquants where,as the amount of labor used increases and the amount of capital used decreases,the marginal product of labor rises when capital per day is on the vertical axis and labor per day is on the horizontal axis?

Total Product is

The Marginal Product of Labor is

In China,firms owned by the government are known as

Let the production function be q = AL^aK^b.The function exhibits increasing returns to scale if

Technological efficiency is

An organization that converts inputs (like Labor,Capital etc.)into output can be a

Only corporations benefit from limited liability.

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 isoquants for producing steel.Decreasing returns to scale are

How much capital does a firm require to produce q = 3200 when labor is 4 and they have a production function equal to q = 200L0.5K0.5?

Production occurs using the fixed-proportion combination of one worker for every one unit of capital.Draw the isoquants for this production function.After one unit of output is produced,does this production function exhibit constant,increasing,or decreasing returns to scale?

One way to explain the convexity of isoquants is to say that

Technical and organizational change

If the marginal productivity of labor is constant for all levels of output,then the average productivity of labor

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

A firm is currently producing 100 widgets using 4 units of labor and 12 units of capital.The firm's production function exhibits constant returns to scale.How many units of labor and capital are needed to produce 350 widgets?

Skateboards are produced according to the production function,q = 10K0.25L0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal productivity of labor

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

-Which graph in the above figure represents the isoquants where,as the amount of labor used increases and the amount of capital used decreases,the marginal product of labor rises when capital per day is on the vertical axis and labor per day is on the horizontal axis?

Total Product is

The Marginal Product of Labor is

In China,firms owned by the government are known as

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

Technological efficiency is

An organization that converts inputs (like Labor,Capital etc.)into output can be a

Only corporations benefit from limited liability.

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

How much capital does a firm require to produce q = 3200 when labor is 4 and they have a production function equal to q = 200L^0.5K^0.5?

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Let the production function be q = AL^aK^b.The function exhibits increasing returns to scale if