Exam 9: Production and Cost in the Long Run

In the following graph,the price of capital is $12 per unit.If the price of labor is $30 per unit,the lowest possible cost of producing 200 units of output is

If a firm is producing the level of output at which short-run average cost equals long-run average cost,then

The expansion path

Refer to the following graph.The price of capital (r)is $20. At the optimal combination of inputs for producing 14,000 units of output,what is the marginal rate of technical substitution?

Economies of scope in the production of goods G and W exist if

Which of the following statements is true?

Learning economies differ from economies of scale because

The slope of an isoquant is

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.Beginning at A,if the producer increases expenditures on labor by $1 and decreases expenditures on capital by $1,then

In the graph below,the price of capital is $500 per unit.Between 30,000 and 50,000 units of output,how much does each additional unit of output add to long-run total cost?

Long-run total cost

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.Beginning at A,if the producer increases labor by one unit and decreases capital by 1 unit,then

A dry cleaner currently has 10 workers and 4 machines.The workers' wage rate is $300 per worker and the rental rate for a machine is $500.The last worker added 600 units to total output And the last machine also added 600 units to total output,and the last machine also added 600 units to total output.If the dry cleaner uses 11 workers and 3 machines instead,then

A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day.The wage rate is $200 and the rental rate for a machine is $1,000.At these input levels,another worker adds 200 sofas,while another machine adds 500 sofas.If the firm uses 45 workers and 31 machines instead,then its

Refer to the following figure.The price of capital is $50 per unit: How many units of labor should the firm use in order to produce 400 units of output at the least cost?

You read a story in the newspaper about the "economies of mass production." This means that

A firm is using 500 units of labor and 100 units of capital to produce 100 units of output.Labor costs $5 per unit and capital $20 per unit.At these input levels,another unit of labor adds 5 units of output,while another unit of capital adds 40 units of output.If the firm uses 496 units of labor and 101 units of capital instead,what will happen?

Refer to the following figure.The price of capital is $50 per unit: What is the minimum cost of producing 1,200 units of output?

If a firm is producing the level of output at which long-run average cost equals long-run marginal cost,then

expansion path shows how