Question 1

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. A

Question 2

Returns to scale is a concept that operates

Accepted Answer

A)  only in the short run. 
B)  only in the long run. 
C)  in both the long run and the short run. 
D)  in either the long run or the short run but never both. 
A)  only in the short run. 
B)  only in the long run. 
C)  in both the long run and the short run. 
D)  in either the long run or the short run but never both. B

Question 3

The actual time length of the short run is determined by when diminishing marginal returns start.

Accepted Answer

A) True 
 B)False  False

Question 4

Changing how production is organized cannot result in changes in productivity.

Accepted Answer

A) True 
 B)False

Question 5

Dell computers has increased production efficiency by

Accepted Answer

A)  producing output with fewer inputs. 
B)  expanding the amount of inputs used. 
C)  outsourcing production. 
D)  relying on decreasing returns to scale. 
A)  producing output with fewer inputs. 
B)  expanding the amount of inputs used. 
C)  outsourcing production. 
D)  relying on decreasing returns to scale.

Question 6

-The above figure shows the short-run production function for Albert's Pretzels.The law of diminishing marginal productivity

Accepted Answer

A)  appears with the second worker. 
B)  has not yet appeared for any of the levels of labor. 
C)  first appears with the fifth worker. 
D)  is refuted by this evidence. 
A)  appears with the second worker. 
B)  has not yet appeared for any of the levels of labor. 
C)  first appears with the fifth worker. 
D)  is refuted by this evidence.

Question 7

Consider the following short-run production function: q = 5L2 - 1/3 L3.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

Accepted Answer

MP = 10L - L².Marginal product

Question 8

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 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

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 11

Firms maximize profit when

Accepted Answer

A)  the additional benefit from producing a good equals the additional cost of producing that good. 
B)  MR = MC. 
C)  the derivative of the profit function with respect to output is zero. 
D)  All of the above. 
A)  the additional benefit from producing a good equals the additional cost of producing that good. 
B)  MR = MC. 
C)  the derivative of the profit function with respect to output is zero. 
D)  All of the above.

Question 12

-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 13

-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 14

If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight,downward-sloping lines.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

-The above figure shows the isoquants for the production of steel.In which regions of production are there increasing,decreasing,and constant returns to scale?

Accepted Answer

When output is less than 10,000 tons,the

Question 19

Limited liability is a benefit to

Accepted Answer

A)  sole proprietorships. 
B)  partnerships. 
C)  corporations. 
D)  All of the above. 
A)  sole proprietorships. 
B)  partnerships. 
C)  corporations. 
D)  All of the above.

Question 20

A typical professional National Football League team has three quarterbacks on its roster.What is one reason why they might not have a fourth quarterback?

Accepted Answer

A)  The fourth quarterback's marginal product is approximately zero. 
B)  The fourth quarterback's marginal product is approximately ten. 
C)  The fourth quarterback's marginal product is less than the first quarterback's marginal product. 
D)  There is a law against carrying four quarterbacks on a team. 
A)  The fourth quarterback's marginal product is approximately zero. 
B)  The fourth quarterback's marginal product is approximately ten. 
C)  The fourth quarterback's marginal product is less than the first quarterback's marginal product. 
D)  There is a law against carrying four quarterbacks on a team.

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

Returns to scale is a concept that operates

The actual time length of the short run is determined by when diminishing marginal returns start.

Changing how production is organized cannot result in changes in productivity.

Dell computers has increased production efficiency by

-The above figure shows the short-run production function for Albert's Pretzels.The law of diminishing marginal productivity

Consider the following short-run production function: q = 5L² - 1/3 L³.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

In China,firms owned by the government are known as

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?

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.

Firms maximize profit when

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

If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight,downward-sloping lines.

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

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.

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.

-The above figure shows the isoquants for the production of steel.In which regions of production are there increasing,decreasing,and constant returns to scale?

Limited liability is a benefit to

A typical professional National Football League team has three quarterbacks on its roster.What is one reason why they might not have a fourth quarterback?

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

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

Returns to scale is a concept that operates

The actual time length of the short run is determined by when diminishing marginal returns start.

Changing how production is organized cannot result in changes in productivity.

Dell computers has increased production efficiency by

-The above figure shows the short-run production function for Albert's Pretzels.The law of diminishing marginal productivity

Consider the following short-run production function: q = 5L2 - 1/3 L3.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

In China,firms owned by the government are known as

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?

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.

Firms maximize profit when

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

If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight,downward-sloping lines.

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

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.

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

-The above figure shows the isoquants for the production of steel.In which regions of production are there increasing,decreasing,and constant returns to scale?

Limited liability is a benefit to

A typical professional National Football League team has three quarterbacks on its roster.What is one reason why they might not have a fourth quarterback?

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

Consider the following short-run production function: q = 5L² - 1/3 L³.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

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?

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.

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

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.