ch 5 quiz

suppose the production for good X is characterized by the following production function, Q=K0.5L0.5, where K Is the fixed input in the short run. If the per-unit rental rate of capital, or, is $15 and the per unit wage, W, is $5, Then the average fixed cost of using 16 units of capital and 25 units of labor is:

$12

What is the value marginal product of labor if: P= $10, MPL=$25, and APL=40

$250

suppose that production for good X is characterized by the following production function, Q=K0.5L0.5, where K is the fixed input in the short run. If per unit rental rate of capital, r, is $25 And the per unit wage, W, is $15, then the average total cost of using 81 units of capital and nine units of labor is:

$80

which of the following cost functions exhibit cost complementarity?

-4Q1Q2. + 8Q1

The production function is Q=K^6L^4. The marginal rate of technical substitution is

2/3K L^-1

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

The average product of labor depends on how many units of:

Labor and capital are used

For managers should use inputs at levels where the

Marginal benefit equals marginal cost and value marginal product of labor equals wage

Supposed to marginal product of labor is 10 and the marginal product of capital is 8. If the wage rate is $5 and the price of capital is $2, then in order to minimize costs the firm should use:

More capital and less labor

when there are economies of scope between products, selling off an Unprofitable subsidiary could lead to

Only a minor reduction in cost

According to the table below what is the marginal cost of production 90 units of output?

8.75

Which curve(s) does the marginal cost curve intersect at the (their) Minimum point?

Average total cost curve and average variable cost curve

suppose the w=$20 and r=$30. the isocost line for a firm in this industry is:

K = 0.033C - 0.66L

The manager institutes an incentive structure to ensure

The firm produces on the production function

The long run is defined as:

The horizon in which the manager can adjust all factors of production

cost complementarity exists in a multiproduct cost function when:

The marginal cost of producing one output is reduced when the output of another product is increased

The marginal product of an input is defined as the change in:

Total output attributable to the last unit of an input

if the marginal product per dollar spent on capital is less than the marginal product per dollar spent on labor, Then in order to minimize costs the firm should use:

less capital and more labor.

The point where diminishing marginal returns has begun to affect production is best characterized by the point where the:

marginal product curve begins to be negatively sloped.

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:

more labor and less capital

Fixed costs exist only in

short run

For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost of producing 10 units of output is

10

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?

11

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

120

For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost of producing 2 units of output is

16

An isocost line

Represents the combinations of K and L that cost the firm the same amount of money

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 = 4, and MPK = 40 the firm:

Should use more K and less L to cost minimize

The feasible means of converting raw inputs such a steel labor and machinery into an output are summarized by

Technology

which of the following conditions is true when a producer Minimize the cost of producing a given level of output?

The marginal product per dollar spent on all inputs is equal

The production function in the table below exhibits decreasing marginal returns to capital over what output range

between 2391 and 3048