Given the linear production function Q = 10K + 5L, if Q = 10,000 and K = 500, how much labor is utilized?
Topic: The Production Process and Costs Quiz ( MCQ and Answer )
Firm managers should use inputs at levels where the:
It is profitable to hire units of labor as long as the value of marginal product
What is the value marginal product of labor if: P = $10, MPL = $25, and APL = 40?
Total product begins to fall when:
If the last unit of input increases total product we know that the marginal product is:
The change in total output attributable to the last unit of an input is the:
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?
Inputs a manager may adjust in order to alter production are:
Which of the following is not a means of acquiring product and process innovations?
The creation of a new product is referred to as:
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 feasible means of converting raw inputs such as steel, labor, and machinery into an output are summarized by:
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: