CA5102 Q3

D. maximum output that can be achieved from specified levels of inputs

A production function is a table, a graph, or an equation showing the: a. combinations of inputs that can be produced with equal costs b. least-cost method of producing output c. optimal combination of inputs d. maximum output that can be achieved from specified levels of inputs

C. 90

According to the table below, at what level of output is marginal cost minimized? a. 160 b. 125 c. 90 d. 50

D. 19.38

According to the table below, what is the average total cost of producing 160 units of output? a. 12.98 b. 22.04 c. 16.31 d. 19.38

D. produce the same level of output

An isoquant represents combinations of inputs that: a. minimize costs b. produce increasing amounts of output c. maximize output d. produce the same level of output

B. are consistent with increasing returns to scale

Diminishing marginal returns: a. imply decreasing returns to scale b. are consistent with increasing returns to scale c. occur only for labor d. occur at all combinations of input usage

C. 10

For a cost function C = 100 + 10Q + Q2, the average fixed cost of producing 10 units of output is: a. 5. b. 1. c. 10. d. None of the answers are correct.

C. 30

For a cost function C = 100 + 10Q + Q2, the average variable cost of producing 20 units of output is: a. 10. b. None of the answers are correct. c. 30. d. 20.

B. No correct answer

For a cost function C = 100 + 10Q + Q2, the marginal cost of producing 10 units of output is: a. 10. b. No correct answer. c. 210. d. 200.

A. 50

For the cost function C(Q) = 100 + 2Q + 3Q2, the average fixed cost of producing 2 units of output is: a. 50. b. 100. c. 3. d. 2.

B. 14

For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost of producing 2 units of output is: a. 2. b. 14. c. 3. d. 12.

A. 230

For the cost function C(Q) = 1000 + 14Q + 9Q2 + 3Q3, what is the marginal cost of producing the fourth unit of output? a. 230Php b. 42Php c. 116Php d. 295Php

B. 33.33

For the cost function C(Q) = 200 + 3Q + 8Q2 + 4Q3, what is the average fixed cost of producing six units of output? a. 212.61 b. 33.33 c. 18.31 d. 42.12

B. 2

Given the following table, how many workers should be hired to maximize profits? a. 4 b. 2 c. 3 d. 1

A. 14

According to the table below, what is the average variable cost of producing 50 units of output? a. 14 b. 20 c. 34 d. 21

C. 8.75

According to the table below, what is the marginal cost of producing 90 units of output? a. 5.32 b. 21.00 c. 8.75 d. 11.67

A. 2,400

According to the table below, what is the total cost of producing 125 units of output? a. 2,400 b. 1,400 c. 1,000 d. 2,050

A. MC1 = 2Q2 + 8Q1.

1. For the multiproduct cost function C(Q1,Q2) = 100 + 2Q1Q2 + 4Q12, what is the marginal cost function for good one? a. MC1 = 2Q2 + 8Q1. b. MC1 = 4Q12 − 2 Q22. c. MC1 = 100 + 2Q1Q2 + 4Q12. d. MC1 = 2Q2 + 4Q1 − Q22

A. Cobb Douglas

1. The production function Q = K0.50L0.50 is called: a. Cobb Douglas. b. linear. c. None of the answers are correct. Leontief.

A. eventually marginal returns diminish

Short-run marginal cost eventually increases with increasing output because: a. eventually marginal returns will diminish b. not all variable inputs increase at the same rate c. diseconomies of scale usually set in immediately d. of diseconomies of scope

C. in the increasing stage

Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. At 10 units of output, the average cost curve is: a. at the minimum level. b. in the declining stage. c. in the increasing stage. d. at the maximum level.

C. 50Php

Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What are the fixed costs? a. 2Php b. 1Php c. 50Php d. 10Php

B. 401Php

Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What is the marginal cost of producing 10 units? a. 560Php b. 401Php c. 1,060Php d. 1,010Php

B. 1,060Php

Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What is the total cost of producing 10 units? a. 2,060Php b. 1,060Php c. 1,010Php d. 560Php

B. 1,010 Php

Suppose the cost function is C(Q) = 50 + Q − 10Q2 + 2Q3. What is the variable cost of producing 10 units? a. 1,060Php b. 1,010Php c. 560Php d. 401Php

C. 8

Suppose the production function is Q = min {K, 2L}. How much output is produced when 4 units of labor and 9 units of capital are employed? a. 9 b. 4 c. 8 d. 2

B. 7

Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed? a. 4 b. 7 c. 3 d. 45

B. slope of the total product curve with respect to labor

The marginal product of labor can be illustrated geometrically as the: a. slope of a chord from the origin out to the total product curve at the specified level of labor b. slope of the total product curve with respect to labor c. slope of the total product curve with respect to capital d. inverse of the slope of a chord from the origin out to the total product curve at the specified level of labor

C. change in output divided by the change in labor input usage

The marginal product of labor is defined by the: a. output divided by the labor input usage b. labor input usage divided by the output level c. change in output divided by the change in labor input usage d. change in labor input usage divided by the change in output

C. MRTS1,2 = MP1/MP2

The marginal rate of technical substitution is defined by: a. MRTS1,2 = MP1MP2 b. MRTS1,2 = P1/P2 c. MRTS1,2 = MP1 /MP2 d. MRTS1,2 = MP1/P1

B. 16

For the cost function C(Q) = 100 + 2Q + 3Q2, the total variable cost of producing 2 units of output is: a. 4. b. 16. c. 2. d. 12.

C. 14 + 16Q

Given a cost function C(Q) = 200 + 14Q + 8Q2, what is the marginal cost function? a. 200 + 8Q2 b. 14Q + 8Q2 c. 14 + 16Q d. 14 + 16Q2

B. 220

Given the Leontief production function Q = min {5.5K, 6.7L}, how much output is produced when K = 40 and L = 35? a. 268 b. 220 c. 192.5 d. 234.5

D. 1,000 units

Given the linear production function Q = 10K + 5L, if Q = 10,000 and K = 500, how much labor is utilized? a. 800 units b. 500 units c. 600 units d. 1,000 units

D. 140Php

If Hilltop Turf Farm's total cost of producing acres of sod is TC = 0.2Q2 + 120Q + 5,000, the marginal cost of producing the 50th acre of sod is: a. 130Php b. 120Php c. 110Php 140Php

D. remain unchanged with increases in output

If average variable cost is increasing with increases in output, total fixed cost will: a. increase with increases in output b. decrease with increases in output c. increase initially and then decrease with increases in output d. remain unchanged with increases in output

B. -PK/PL

If labor is on the vertical axis and capital is on the horizontal axis, the slope of an isocost line is given by: a. −PKPL b. −PK /PL c. −MPL /MPK d. −PL /PK

A. 1/5

If the production function is Q = K0.50L0.50 and capital is fixed at 1 unit, then the average product of labor when L = 25 is: a. 1/5 b. 2/5 c. 10 d. None of the answers are correct

C. price of the variable input divided by its average product

If there is only one variable input, average variable cost can be defined as the: a. price of the variable input divided by its marginal product b. output's price divided by the input's average product c. price of the variable input divided by its average product d. output's price divided by the input's marginal product

B. marginal products will eventually decrease

Isoquants usually slope downward (from left to right) because: a. marginal products are always increasing b. marginal products will eventually decrease c. marginal products are always positive d. marginal products are usually positive

A. isoquants

Lines that represent bundles of inputs that cost the same total amount are called: a. isocost curves b. cost curves c. isoquants d. total cost curves

D. the production function exhibits constant returns to scale

Long-run average cost equals long-run marginal cost whenever: a. fixed costs are zero b. the cost of capital is near zero c. no factor always has increasing marginal returns d. the production function exhibits constant returns to scale

c. 11

Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 5 units of capital and 10 units of labor are employed? a. 3 b. 45 c. 11 d. 4

A. 3

Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 10 units of capital and 10 units of labor are employed? a. 3 b. 45 c. 11 d. 4

C. 3

Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 5 units of capital and 10 units of labor are employed? a. 4 b. 45 c. 3 d. 11

c. 9

Suppose the production function is given by Q = min {K, L}. How much output is produced when 10 units of labor and 9 units of capital are employed? a. 4 b. 13 c. 9 d. 0

B. 4

Suppose the production function is given by Q = min {K, L}. How much output is produced when 4 units of labor and 9 units of capital are employed? a. 9 b. 4 c. 0 d. 13

C. Marginal cost

The addition to total cost resulting from the addition of the last unit of output is known as: a. average variable cost b. average total cost c. marginal cost d. average product

A. output divided by the labor input usage

The average product of labor is defined as the: a. output divided by the labor input usage b. change in labor input usage divided by the change in output c. change in output divided by the change in labor input usage d. labor input usage divided by the output level

B. answer a and b, but not c

The law of diminishing marginal returns is obvious because, if it didn't hold, it would be possible to: a. feed everyone in the world by intensively cultivating one acre of land b. answers a and b, but not c c. manufacture all of the cars in the world using just one of the world's existing factories d. increase total output of a product without employing additional inputs

A. The marginal product of a factor eventually diminishes as more of the input is used, holding other inputs fixed

The law of diminishing marginal returns states that: a. the marginal product of a factor eventually diminishes as more of the input is used, holding other inputs fixed b. the marginal product of labor returns as more capital is used c. the marginal product of labor declines as all inputs are increased d. production functions exhibit decreasing returns to scale

A. shows the rate at which one input can be traded for another, holding output constant

The marginal rate of technical substitution between two inputs: a. shows the rate at which one input can be traded for another, holding output constant b. increases as we move down an isoquant c. shows the rate at which output can be increased by using more of both inputs d. shows the efficient combination of inputs

A. is the value of the inputs in their most highly valued alternative use

The opportunity cost of a firm's inputs a. is the value of the inputs in their most highly valued alternative use b. includes implicit costs but does not include explicit costs c. includes explicit costs but does not include implicit cost d. depends on who supplies them to the firm

C. PLMPK = PKMPL

The optimal combination of two inputs, K and L, can be characterized by: a. MPK /MPL = PL /PK b. PKMPK = PLMPL c. PLMPK = PKMPL d. MPK = MPL

C. 3

The production function for a competitive firm is Q = K0.50 L0.50. The firm sells its output at a price of 10Php, and can hire labor at a wage of 5Php. Capital is fixed at one unit and costs 2Php. The maximum profits are: a. 10. b. 15. c. 3. d. None of the answers are correct.

D. 1

The production function for a competitive firm is Q = K0.50 L0.50. The firm sells its output at a price of 10Php, and can hire labor at a wage of 5Php. Capital is fixed at one unit. The profit-maximizing quantity of labor is: a. 10. b. None of the answers are correct. c. 2/5. d. 1.

D. No correct answer

The production function for a competitive firm is Q = K0.50L0.50. The firm sells its output at a price of 10Php, and can hire labor at a wage of 5Php. Capital is fixed at 25 units. The profit-maximizing quantity of labor is: a. 10. b. 2. c. 1. d. No correct answer.

D. 1.50Php

The weekly total cost of baking pies at Tasty Tortes is given by TC = 0.01Q1.5. Tasty's marginal cost of producing 10,000 pies a week is: a. 2.00Php b. 2.50Php c. 1.00Php d. 1.50Php

B. marginal cost is equal to average total cost

When average total cost is at its minimum: a. average total cost is equal to average variable cost b. marginal cost is equal to average total cost c. average variable cost plus average fixed cost is declining with increases in output d. marginal cost is equal to average variable cost

D. marginal cost is less than average total cost

When average variable cost is at its minimum: a. average total cost is increasing with increases in output b. average variable cost plus average fixed cost is increasing with increases in output c. average total cost is equal to average variable cost d. marginal cost is less than average total cost

D. average product is greater than marginal product

When total product is at its maximum: a. average product is maximized b. average product equals marginal product c. marginal product equals 1 d. average product is greater than marginal product