MCQ Academy - English
Free Online MCQ Practice Tests in English
Popular Quiz Papers
Latest Quizzes
Given the linear production function Q = 10K + 5L, if Q = 10,000 and K = 500, how much labor is utilized?
Correct answer(s):
- 1,000 units
Firm managers should use inputs at levels where the:
Correct answer(s):
- Marginal benefit equals marginal cost and value marginal product of labor equals wage
It is profitable to hire units of labor as long as the value of marginal product
Correct answer(s):
- Exceeds wage
What is the value marginal product of labor if: P = $10, MPL = $25, and APL = 40?
Correct answer(s):
- $250
Total product begins to fall when:
Correct answer(s):
- Marginal product is zero
If the last unit of input increases total product we know that the marginal product is:
Correct answer(s):
- Positive
The change in total output attributable to the last unit of an input is the:
Correct answer(s):
- Marginal product
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?
Correct answer(s):
- 120
Inputs a manager may adjust in order to alter production are:
Correct answer(s):
- Variable factors
Which of the following is not a means of acquiring product and process innovations?
Correct answer(s):
- Mass production of the existing product
The creation of a new product is referred to as:
Correct answer(s):
- Product innovation
The recipe that defines the maximum amount of output that can be produced with K units of capital and L units of labor is the:
Correct answer(s):
- Production function
The feasible means of converting raw inputs such as steel, labor, and machinery into an output are summarized by:
Correct answer(s):
- Technology
The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit. The maximum profits are
Correct answer(s):
- 5
The production function for a competitive firm is Q = K.5L.5. The firm sells its output at a price of $10, and can hire labor at a wage of $5. Capital is fixed at one unit. The profit-maximizing quantity of labor is
Correct answer(s):
- 1
If the production function is Q = KL and capital is fixed at 1 unit, then the marginal product of labor when L = 25 is
Correct answer(s):
- None of the statements associated with this question are correct
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
Correct answer(s):
- The MRTS is equal to the ratio of input prices and the marginal product per dollar spent on all inputs is equal
For a cost function C = 100 + 10Q + Q2, the average fixed cost of producing 10 units of output is
Correct answer(s):
- 10
For a cost function C = 100 + 10Q + Q2, the average variable cost of producing 20 units of output is
Correct answer(s):
- 30
For a cost function C = 100 + 10Q + Q2, the marginal cost of producing 10 units of output is
Correct answer(s):
- None of the statements associated with this question are correct