Question 1

Isoquants that are downward-sloping straight lines imply that the inputs

Accepted Answer

A)  are perfect substitutes. 
B)  are imperfect substitutes. 
C)  cannot be used together. 
D)  must be used together in a certain proportion. 
A)  are perfect substitutes. 
B)  are imperfect substitutes. 
C)  cannot be used together. 
D)  must be used together in a certain proportion.

Question 2

A firm operating with diminishing total returns cannot be profit maximizing.

Accepted Answer

A) True 
 B)False

Question 3

-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 4

Suppose the production of paved roadways can be represented as q = L0.5 + K0.5.Which of the following statements is (are)TRUE?

Accepted Answer

A)  Labor is subject to diminishing marginal productivity in the short run. 
B)  Labor and capital are imperfect substitutes. 
C)  The isoquants for paved roadways are convex. 
D)  All of the above. 
A)  Labor is subject to diminishing marginal productivity in the short run. 
B)  Labor and capital are imperfect substitutes. 
C)  The isoquants for paved roadways are convex. 
D)  All of the above.

Question 5

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.

Question 6

What is one reason "micro-managers" might be less successful than so-called "delegators"?

Accepted Answer

A)  Delegators are smarter. 
B)  Delegators enjoy increasing returns to scale. 
C)  Micro-managers suffer decreasing returns to scale. 
D)  Micro-managers have constant returns to scale. 
A)  Delegators are smarter. 
B)  Delegators enjoy increasing returns to scale. 
C)  Micro-managers suffer decreasing returns to scale. 
D)  Micro-managers have constant returns to scale.

Question 7

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

Accepted Answer

A) True 
 B)False

Question 8

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 9

An isoquant represents levels of capital and labor that

Accepted Answer

A)  have constant marginal productivity. 
B)  yield the same level of output. 
C)  incur the same total cost. 
D)  All of the above. 
A)  have constant marginal productivity. 
B)  yield the same level of output. 
C)  incur the same total cost. 
D)  All of the above.

Question 10

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

Accepted Answer

The production function below illustrate

Question 11

Non-neutral technological change is more valuable to labor than neutral technological change.

Accepted Answer

A) True 
 B)False

Question 12

A firm can experience increasing,constant and decreasing returns to scale for various levels of output.

Accepted Answer

A) True 
 B)False

Question 13

What do we mean by efficient production?

Accepted Answer

Efficient production implies t

Question 14

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 15

-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 16

Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish.Now,one worker mixes the dough,another shapes it,the third puts the unbaked pretzels into the oven and the fourth removes the finished product.Output has doubled.This is an example of

Accepted Answer

A)  neutral technical change. 
B)  labor-saving technical change. 
C)  division of labor. 
D)  economies of scale. 
A)  neutral technical change. 
B)  labor-saving technical change. 
C)  division of labor. 
D)  economies of scale.

Question 17

The Average 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 18

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 19

Suppose the production of mp3 players can be represented by the following production function:   Which of the following statements is (are)TRUE?

Accepted Answer

A)  The production function has decreasing returns to scale. 
B)  The marginal productivity of labor falls as labor increases in the short run. 
C)  Capital and labor can be substituted for one another. 
D)  All of the above. 
A)  The production function has decreasing returns to scale. 
B)  The marginal productivity of labor falls as labor increases in the short run. 
C)  Capital and labor can be substituted for one another. 
D)  All of the above.

Question 20

Production functions only apply to advanced economies.

Accepted Answer

A) True 
 B)False

Isoquants that are downward-sloping straight lines imply that the inputs

A firm operating with diminishing total returns cannot be profit maximizing.

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

Suppose the production of paved roadways can be represented as q = L^0.5 + K^0.5.Which of the following statements is (are)TRUE?

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

What is one reason "micro-managers" might be less successful than so-called "delegators"?

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

The Marginal Product of Labor is

An isoquant represents levels of capital and labor that

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

Non-neutral technological change is more valuable to labor than neutral technological change.

A firm can experience increasing,constant and decreasing returns to scale for various levels of output.

What do we mean by efficient production?

Technical and organizational change

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

The Average Product of Labor is

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?

Suppose the production of mp3 players can be represented by the following production function: Which of the following statements is (are)TRUE?

Production functions only apply to advanced economies.

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

Isoquants that are downward-sloping straight lines imply that the inputs

A firm operating with diminishing total returns cannot be profit maximizing.

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

Suppose the production of paved roadways can be represented as q = L0.5 + K0.5.Which of the following statements is (are)TRUE?

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

What is one reason "micro-managers" might be less successful than so-called "delegators"?

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

The Marginal Product of Labor is

An isoquant represents levels of capital and labor that

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

Non-neutral technological change is more valuable to labor than neutral technological change.

A firm can experience increasing,constant and decreasing returns to scale for various levels of output.

What do we mean by efficient production?

Technical and organizational change

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

The Average Product of Labor is

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?

Suppose the production of mp3 players can be represented by the following production function: Which of the following statements is (are)TRUE?

Production functions only apply to advanced economies.

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 of paved roadways can be represented as q = L^0.5 + K^0.5.Which of the following statements is (are)TRUE?