Given the linear production function Q = 10K + 5L, if Q = 10,000 and K = 500, how much labor is utilized?
Subject: Managerial Economics Multiple Choice Quiz ( MCQ ) and Answer
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?
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:
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?
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: