Subject: Managerial Economics Multiple Choice Quiz ( MCQ ) and Answer
The production function for good X in the above table exhibits increasing marginal returns to capital over what output range?
The point where diminishing marginal returns has begun to affect production, is best characterized by the point where the
Which of the following “costs” could a firm that wants to remain in business avoid if it halted current production?
Suppose the production function is given by Q = 4K + 6L. What is the average product of capital when 10 units of capital and 5 units of labor are employed?
Suppose the production function is given by Q = 2K + 5L. What is the marginal product of labor when 15 units of capital and 10 units of labor are employed?
Suppose the production function is Q = min {3K, L}. How much output is produced when 6 units of labor and 3 units of capital are employed?
Suppose the 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