The average product of labor depends on how many units of
Correct answer(s):
- Labor and capital are used
Topic
The Production Process and Costs
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Quizzes in The Production Process and Costs
The Cobb-Douglas production function is
Correct answer(s):
- Q = KaLb
With a linear production function there is a
Correct answer(s):
- Perfect substitutable relationship between all inputs
The Leontief production function
Correct answer(s):
- Implies inputs are used in fixed proportions
The demand for an input is
Correct answer(s):
- The VMP of the input
The demand for labor by a profit-maximizing firm is determined by
Correct answer(s):
- VMPL = W
It is profitable to hire labor so long as the
Correct answer(s):
- VMPL is greater than wage
The value of marginal product of an input is the value of the
Correct answer(s):
- Output produced by the last unit of an input
The manager institutes an incentive structure to ensure
Correct answer(s):
- The firm produces on the production function
If a firm is operating on the production function, then workers
Correct answer(s):
- Must be putting forth maximal effort
As the usage of an input increases, marginal product
Correct answer(s):
- Initially increases then begins to decline
As long as marginal product is increasing, marginal product is
Correct answer(s):
- Greater than average product
The marginal product of an input is defined as the change in
Correct answer(s):
- Total output attributable to the last unit of an input
Which of the following is not a measure of productivity?
Correct answer(s):
- Average advertising
The long-run is defined as
Correct answer(s):
- The horizon in which the manager can adjust all factors of production
The short-run is defined as the time-frame
Correct answer(s):
- In which there are fixed factors of production
Variable factors of production are the inputs that a manager
Correct answer(s):
- May adjust in order to alter production
Which of the following is the most common source of technology?
Correct answer(s):
- independent R&D
A production function
Correct answer(s):
- Represents the technology available for turning inputs into output
The minimum average cost of producing alternate levels of output, allowing for optimal selection of all variables of production is defined by the:
Correct answer(s):
- Long run average total cost curve