Given the production function Q = min {4K, 3L}, what is the average product of capital when 8 units of capital and 16 units of labor are used?
  • 4
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?
  • 36

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

  • 1,000 units
Firm managers should use inputs at levels where the:
  • Marginal benefit equals marginal cost and value marginal product of labor equals wage

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
Which of the following is not a means of acquiring product and process innovations?
  • Mass production of the existing product

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:

  • Production function