The feasible means of converting raw inputs such as steel, labor, and machinery into an output are summarized by:
Multiple Choice Quizzes with Answer in English (Page: 377)
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
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
If the production function is Q = KL and capital is fixed at 1 unit, then the marginal product of labor when L = 25 is
Which of the following conditions is true when a producer minimizes the cost of producing a given level of output?
For a cost function C = 100 + 10Q + Q2, the average fixed cost of producing 10 units of output is
For a cost function C = 100 + 10Q + Q2, the average variable cost of producing 20 units of output is
For a cost function C = 100 + 10Q + Q2, the marginal cost of producing 10 units of output is
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
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:
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 25 units. The profit-maximizing quantity of labor is
The production function Q = L.5K.5 is called
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:
Which of the following statements is incorrect?
If a firm’s production function is Leontief and the wage rate goes up the
For the cost function C(Q) = 100 + 2Q + 3Q2, the total variable cost of producing 2 units of output is ____?
For the cost function C(Q) = 100 + 2Q + 3Q2, the average fixed cost of producing 2 units of output is
For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost of producing 2 units of output is
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?
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?