BE 301 online hw chapter 5

Suppose the production function is given by Q = K1/2L1/2, and that Q = 30 and K = 25. How much labor is employed by the firm? 49 6 36 25

36

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

14 + 16Q

Given the following table, how many workers should be hired to maximize profits? LaborMarginal Product LaborVMPLWage18$32$100232$128$100316$64$1004-1$-4$1005-12$-48$100 1 2 3 4

2

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

230

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? Multiple Choice 3 4 11 45

3

For the production function Q = 5.2K + 3.8L, if K = 16 and L = 12, we know that MPK is: 16. 5.2. 3.8. 12.

5.2

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? 3 4 7 45

7

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? 2 4 8 9

8

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

1,000 units

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

1/5

What is the average product of labor, given that the level of labor equals 10, total output equals 1200, and the marginal product of labor equals 200? 20 120 6 2,000

120

The production function Q = L.5K.5 is called: Cobb Douglas. Leontief. linear. None of the answers are correct.

Cobb Douglas.

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately? Economies of scale Diminishing average fixed costs Cost complementarity Economies of scope

Economies of scope

If the production function is Q = KL and capital is fixed at 1 unit, then the marginal product of labor when L = 25 is: ¼. 1/10. 15. None of the answers are correct.

None of the answers are correct.

It is profitable to hire units of labor as long as the value of marginal product: is less than wage. exceeds average product. equals price. exceeds wage.

exceeds wage.

The combinations of inputs that produce a given level of output are depicted by: indifference curves. budget lines. isocost curves. isoquants.

isoquants.

Total product begins to fall when: marginal product is maximized. average product is below zero. average product is negative. marginal product is zero.

marginal product is zero.

The change in total output attributable to the last unit of an input is the: total product. average product. marginal product. marginal return.

marginal product.

Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price of capital is $2, then in order to minimize costs the firm should use: more capital and less labor. more labor and less capital. three times more capital than labor. none of the answers are correct.

more labor and less capital.

You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 20, and MPK = 40 the firm: is cost minimizing. should use less L and more K to cost minimize. should use more L and less K to cost minimize. is profit maximizing but not cost minimizing.

should use more L and less K to cost minimize.