Exam 9: Production and Cost in the Long Run

Refer to the following graph.The price of capital (r)is $20. What combination of K and L should the firm choose to produce 14,000 units of output at the lowest cost?

A publishing house is using 400 printers and 200 printing presses to produce books.The printers' wage rate is $20 and the price of a printing press is $100.The last printer added 20 books to total output,while the last printing press added 50 books to total output.The publishing house

In the following graph,the price of labor is $15 per unit.The minimum cost of producing 1,000 units of output is:

In the graph below,the price of capital is $500 per unit.When output is 10,000 units,what is long-run average cost?

If the price of labor is $5 and the price of capital is $10,what is the marginal rate of technical substitution at the optimal input choice?

A cow will produce 8500 lbs.of milk if fed either 5000 lbs.of hay and 6200 lbs.of grain or 5600 lbs.of hay and 5400 lbs.of grain.Over this range,the marginal rate of technical substitution between hay and grain is

Refer to the following figure.The price of capital is $50 per unit: What is the price per unit of labor?

Refer to the following graph.The price of capital (r)is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A?

In the graph below,the price of capital is $500 per unit.Given a total cost of $50,000,the maximum amount of output possible is

If the marginal rate of technical substitution of labor for capital is 6,the price of labor is $18,and the price of capital is $9,then the firm

Following is a firm's expansion path.The price of capital is $5 per unit; the price of labor is $2 per unit. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Ontimal Input Choice }$ Units of Output 10 20 30 Units of Capital 6 8 13 Units of Labor 5 10 20 When output is 30 units,what is long-run total cost?

In the following graph,the price of capital is $100 per unit.What is the marginal rate of technical substitution at point C?

Suppose that when a firm increases output by 50%,long-run total cost increases by less than 50%.The firm will experience

Refer to the following graph.The price of labor is $3 per unit: What is the marginal rate of technical substitution at point B?

The marginal rate of technical substitution is

Given the above graph,as you move from input combination A to input combination C,

In the above graph,the shift from I to II was due to

A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs $100 per unit and labor $20 per unit.The last unit of capital added 50 units of output,while the last unit of labor added 20 units of output.The firm

Refer to the following graph.The price of capital (r)is $20. What is the lowest possible cost of producing 5,000 units of output?

producer is hiring 20 units of labor and 6 units of capital (bundle A).The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.The producer