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 }$ $\begin{array}{c} \begin{array}{c} \text {Units of Output}\\ 10\\ 20\\ 30 \end{array} \begin{array}{c} \text {Units of Capital}\\ 6\\ 8\\ 13 \end{array} \begin{array}{c} \text {Units of Labor}\\ 5\\ 10\\ 20 \end{array} \end{array}$ When output is 20 units,what is long-run average cost?

A) $2 B) $3.50 C) $4 D) $4.50 E) none of the above A) $2 B) $3.50 C) $4 D) $4.50 E) none of the above

Exam 9: Production and Cost in the Long Run

In the following graph,the price of capital is $100 per unit.How many units of capital should a firm use in order to produce 500 units of output at the least cost?

(Multiple Choice)

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Question 41

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 B?

(Multiple Choice)

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Question 42

Given the above graph,as you move from point A to point B,

(Multiple Choice)

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Question 43

Which of the following is FALSE?

(Multiple Choice)

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Question 44

The marginal rate of technical substitution is

(Multiple Choice)

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Question 45

Refer to the following graph.The price of labor is $3 per unit: What is the minimum cost of producing 100 units of output?

(Multiple Choice)

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Question 46

In the following graph,the price of labor is $15 per unit.How many units of labor should a firm use to produce 2,000 units of output at the least cost?

(Multiple Choice)

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Question 47

In the graph below,the price of capital is $500 per unit.Which of the following combinations of capital and labor lies on the expansion path?

(Multiple Choice)

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Question 48

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 20 units,what is long-run average cost?

(Multiple Choice)

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Question 49

Refer to the following figure.The price of capital is $50 per unit: The minimum cost of producing 800 units of output is

(Multiple Choice)

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Question 50

A firm is using 500 units of labor and 100 units of capital to produce 100 units of output.The price of labor is $5 per unit and the price of capital is $20 per unit.At these input levels,another unit of labor adds 50 units of output,while another unit of capital adds 400 units of output.The firm could increase output by

(Multiple Choice)

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Question 51

A firm is using 50 units of labor and 100 units of capital to produce 2,000 units of output.The price of labor is $200 per unit and the price of capital is $100 per unit.At these input levels,another unit of labor adds 400 units to output and another unit of capital adds 600 units to output.The firm

(Multiple Choice)

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Question 52

In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange

(Multiple Choice)

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Question 53

Refer to the following graph.The price of labor is $3 per unit: How many units of labor should a firm use in order to produce 100 units of output at the least cost?

(Multiple Choice)

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Question 54

You overhear a businessman say: "We want to be big because there are economies associated with bigness." What he means is that

(Multiple Choice)

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Question 55

Which of the following are characteristics of a typical isoquant?

(Multiple Choice)

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Question 56

Diseconomies of scale

(Multiple Choice)

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Question 57

In the following graph,the price of capital is $100 per unit; the price of labor is $25 per unit.When output is 30 units,what is TOTAL cost?

(Multiple Choice)

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Question 58

Given the above graph,the marginal rate of technical substitution at point A is

(Multiple Choice)

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Question 59

Refer to the following graph.The price of capital (r)is $20. What is the lowest possible cost at which 14,000 units of output can be produced?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 89

In the following graph,the price of capital is $100 per unit.How many units of capital should a firm use in order to produce 500 units of output at the least cost?

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 B?

Given the above graph,as you move from point A to point B,

Which of the following is FALSE?

The marginal rate of technical substitution is

Refer to the following graph.The price of labor is $3 per unit: What is the minimum cost of producing 100 units of output?

In the following graph,the price of labor is $15 per unit.How many units of labor should a firm use to produce 2,000 units of output at the least cost?

In the graph below,the price of capital is $500 per unit.Which of the following combinations of capital and labor lies on the expansion path?

Refer to the following figure.The price of capital is $50 per unit: The minimum cost of producing 800 units of output is

A firm is using 50 units of labor and 100 units of capital to produce 2,000 units of output.The price of labor is $200 per unit and the price of capital is $100 per unit.At these input levels,another unit of labor adds 400 units to output and another unit of capital adds 600 units to output.The firm

In the graph below,the price of capital is $500 per unit.At point A,the firm can exchange

Refer to the following graph.The price of labor is $3 per unit: How many units of labor should a firm use in order to produce 100 units of output at the least cost?

You overhear a businessman say: "We want to be big because there are economies associated with bigness." What he means is that

Which of the following are characteristics of a typical isoquant?

Diseconomies of scale

In the following graph,the price of capital is $100 per unit; the price of labor is $25 per unit.When output is 30 units,what is TOTAL cost?

Given the above graph,the marginal rate of technical substitution at point A is

Refer to the following graph.The price of capital (r)is $20. What is the lowest possible cost at which 14,000 units of output can be produced?

Managers,profits,and Markets

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Marginal Analysis for Optimal Decisions

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Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Short Run

Production and Cost Estimation

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

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