The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. \[\begin{array} { | c | c | c | c | c | } \hline \text { Technique } & \text { A } & \text { B } & \text { C } & \text { D } \\ \hline \text { Labour } & 25 & 35 & 50 & 30 \\ \hline \text { Capital } & 50 & 35 & 25 & 60 \\ \hline \end{array}\] TABLE 8- 1 -Refer to Table 8- 1.If the price of labour is $5 and the price of capital is $10,which production technique minimizes the costs of producing 1000 units of output?

A) A B) B C) C D) D E) Any of the techniques have the same cost. A) A B) B C) C D) D E) Any of the techniques have the same cost.

The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. \[\begin{array} { | l | c | c | c | c | } \hline \text { Technique } & \text { A } & \text { B } & \text { C } & \text { D } \\ \hline \text { Labour } & 25 & 35 & 50 & 30 \\ \hline \text { Capital } & 50 & 35 & 25 & 60 \\ \hline \end{array}\] TABLE 8- 1 -Refer to Table 8- 1.Which production technique is obviously technically inefficient?

A) A B) B C) C D) D E) All four techniques are inefficient. A) A B) B C) C D) D E) All four techniques are inefficient.

Exam 8: Producers in the Long Run

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.Suppose this firm is producing 3000 golf tees and is at point F on the isoquant map.In order to maintain its output and minimize costs this firm should

(Multiple Choice)

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Question 81

A short- run average total cost curve will touch the long- run average cost curve at a level of output only

(Multiple Choice)

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Question 82

A firm operates at its least- cost position for a given level of output by equating

(Multiple Choice)

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Question 83

The figure below shows a family of cost curves for a firm.The subscripts 1,2,and 3 for the SRATC curves refer to different plant sizes. FIGURE 8- 3 -Refer to Figure 8- 3.The minimum efficient scale is achieved by this firm at output level

(Multiple Choice)

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Question 84

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.This firm will minimize its costs of producing 2000 golf tees at point

(Multiple Choice)

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Question 85

FIGURE 8- 1 -Refer to Figure 8- 1.For which of the four firms in the figure is output increasing more than in proportion to inputs for all output levels?

(Multiple Choice)

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Question 86

Movement from one point to another along an isoquant implies a change in

(Multiple Choice)

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Question 87

By expressing the cost- minimizing condition as MPK/MPL = PK/PL,we are able to see

(Multiple Choice)

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Question 88

Suppose that capital costs $8 per unit and labour costs $4 per unit.For a profit- maximizing firm operating at its optimal factor mix,if the marginal product of capital is 60,the marginal product of labour must be

(Multiple Choice)

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Question 89

The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. Technique A B C D Labour 25 35 50 30 Capital 50 35 25 60 TABLE 8- 1 -Refer to Table 8- 1.If the price of labour is $5 and the price of capital is $10,which production technique minimizes the costs of producing 1000 units of output?

(Multiple Choice)

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Question 90

Consider a firm in the long run that is trying to maximize its profits.It should

(Multiple Choice)

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Question 91

Suppose a firm is employing labour (L)and capital (K)such that MPK/MPL = PK/PL.If the price of labour rises,the cost- minimizing firm should

(Multiple Choice)

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Question 92

Movement from one point to another along an isocost line implies a change in

(Multiple Choice)

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Question 93

Which of the following conditions indicate cost minimization,assuming two inputs,labour (L)and capital (K)?

(Multiple Choice)

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Question 94

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.As this firm is increasing its production of golf tees,it is experiencing returns to scale.

(Multiple Choice)

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Question 95

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

(Multiple Choice)

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Question 96

The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. Technique A B C D Labour 25 35 50 30 Capital 50 35 25 60 TABLE 8- 1 -Refer to Table 8- 1.Which production technique is obviously technically inefficient?

(Multiple Choice)

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Question 97

FIGURE 8- 4 -Refer to Figure 8- 4,with the isoquants and isocost line as shown.A firm that is producing at point C can reduce its costs for producing 1000 units by employing

(Multiple Choice)

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Question 98

Suppose that a firm is using 100 units of labour and 50 units of capital to produce 200 completed client tax returns per day.The price of labour is $5 per unit and the price of capital is $2 per unit.The MPL equals 5 and the MPK equals 2.In this situation,the firm

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Question 99

FIGURE 8- 4 -Refer to Figure 8- 4,with the isoquants and isocost line as shown.A firm that is producing at point A can reduce its costs for producing 1000 units by employing

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Question 100

Showing 81 - 100 of 127

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.Suppose this firm is producing 3000 golf tees and is at point F on the isoquant map.In order to maintain its output and minimize costs this firm should

A short- run average total cost curve will touch the long- run average cost curve at a level of output only

A firm operates at its least- cost position for a given level of output by equating

The figure below shows a family of cost curves for a firm.The subscripts 1,2,and 3 for the SRATC curves refer to different plant sizes. FIGURE 8- 3 -Refer to Figure 8- 3.The minimum efficient scale is achieved by this firm at output level

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.This firm will minimize its costs of producing 2000 golf tees at point

FIGURE 8- 1 -Refer to Figure 8- 1.For which of the four firms in the figure is output increasing more than in proportion to inputs for all output levels?

Movement from one point to another along an isoquant implies a change in

By expressing the cost- minimizing condition as MPK/MPL = PK/PL,we are able to see

Suppose that capital costs $8 per unit and labour costs $4 per unit.For a profit- maximizing firm operating at its optimal factor mix,if the marginal product of capital is 60,the marginal product of labour must be

Consider a firm in the long run that is trying to maximize its profits.It should

Suppose a firm is employing labour (L)and capital (K)such that MPK/MPL = PK/PL.If the price of labour rises,the cost- minimizing firm should

Movement from one point to another along an isocost line implies a change in

Which of the following conditions indicate cost minimization,assuming two inputs,labour (L)and capital (K)?

The figure below shows the isocost lines and the isoquant map for a firm producing golf tees. FIGURE 8- 6 -Refer to Figure 8- 6.As this firm is increasing its production of golf tees,it is experiencing returns to scale.

Assume a firm is using 10 units of capital and 10 units of labour to produce 10 widgets per hour.By doubling both inputs the result is a doubling of output.This firm is experiencing

The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. Technique A B C D Labour 25 35 50 30 Capital 50 35 25 60 TABLE 8- 1 -Refer to Table 8- 1.Which production technique is obviously technically inefficient?

FIGURE 8- 4 -Refer to Figure 8- 4,with the isoquants and isocost line as shown.A firm that is producing at point C can reduce its costs for producing 1000 units by employing

Suppose that a firm is using 100 units of labour and 50 units of capital to produce 200 completed client tax returns per day.The price of labour is $5 per unit and the price of capital is $2 per unit.The MPL equals 5 and the MPK equals 2.In this situation,the firm

FIGURE 8- 4 -Refer to Figure 8- 4,with the isoquants and isocost line as shown.A firm that is producing at point A can reduce its costs for producing 1000 units by employing

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