Exam 7: Production

Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor. -In Figure 7-1,marginal product of labor is positive but lesser than the average product of labor after point _____.

If isoquants are drawn as straight lines,it implies that:

If a firm doubles its usage of all inputs,and output more than doubles,the production function is said to exhibit:

The ratio of total product to the total quantity of the input being used is _____.

Consider the following Cobb-Douglas production function,T = aL^bK^cE^d,where T is t-shirts produced,L is labor input,K is capital,and E is energy input.Mathematically show how the returns to scale of the production function depends upon the parameters a,b,c,and d.

The fact that a large-scale operation can take advantage of specialization of labor often gives rise to _____.

For the production function Q = Q(L),the average product of labor is given as AP_L = Q(L)/L.Taking the deriviative with respect to L,we have dAP_L/dL = 1/L(dQ/dL - Q/L),implying that:

The duration of the short run varies by industry because _____.

Isoquants that are farther away from the origin indicate:

If a firm doubles its usage of all inputs and output less than doubles,the production function Is said to exhibit:

Which of the following is a feature of an isoquant?

Suppose that at a point on an isoquant,the following information is true: L increases by 5;K falls by 3;MP_L = 4,then MP_K must be:

Returns to scale can be evaluated by looking at how output changes along _____.

If the sum of the powers associated with the inputs in a Cobb-Douglas production function Exceeds 1,the production function is characterized by:

If the marginal product of a variable input is declining,then:

Which of the following contributes to the increasing returns to scale in production as a firm expands capacity?

The short-run refers to:

A carpenter hammers nails each day at work.During the first hour she can hammer 120 nails,the second hour 100 nails,the third hour 90 nails,the fourth hour 60 nails,and the fifth hour 10 nails.The average product of five hours work is _____ nails.

The law of diminishing returns holds only:

Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor. -In Figure 7.2,the law of diminishing marginal returns comes into play beyond point _____.