Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. $\begin{array}{ccc} &\text { Optimal Imput Choice }\\ \text { Units of Output } & \text { Units of Capital }&\text { Units of Labor } \\ 10 & 6 &5 \\ 20 & 8 & 10 \\ 30 & 13 & 20 \\ \end{array}$ -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

Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. $\begin{array}{ccc} &\text { Optimal Imput Choice }\\ \text { Units of Output } & \text { Units of Capital }&\text { Units of Labor } \\ 10 & 6 &5 \\ 20 & 8 & 10 \\ 30 & 13 & 20 \\ \end{array}$ -How much does the 10th unit of output add to long-run total cost?

A) zero B) $3 C) $4 D) $40 E) none of the above A) zero B) $3 C) $4 D) $40 E) none of the above

Exam 9: Production and Cost in the Long Run

Refer to the following: A 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

(Multiple Choice)

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Question 81

-As you move from input combination A to input combination C,

(Multiple Choice)

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Question 82

Refer to the following: A 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. -In equilibrium,

(Multiple Choice)

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Question 83

Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. Optimal Imput Choice Units of Output Units of Capital Units of Labor 10 6 5 20 8 10 30 13 20 -When output is 20 units, what is long-run average cost?

(Multiple Choice)

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Question 84

The slope of an isoquant is

(Multiple Choice)

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Question 85

The following graph shows one of a firm's isocost curves and isoquants. a. Combination A is not an economically efficient method of producing 4,000 units of output because, at A, _____ exceeds _ or, in other words, _ exceeds _. The firm should increase _ and decrease _. b. Combination B is not an economically efficient method of producing 4,000 units of output because, at B, _ exceeds _, or, in other words, _ exceeds _. The firm should increase _ and decrease _. c. At the economically efficient method of producing 4,000 units of output the MRTS will equal _____.

(Short Answer)

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Question 86

Refer to the following: The price of capital is $100 per unit. -Which of the following combinations of capital and labor lies on the expansion path?

(Multiple Choice)

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Question 87

Economies of scale exist when

(Multiple Choice)

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Question 88

Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. Optimal Imput Choice Units of Output Units of Capital Units of Labor 10 6 5 20 8 10 30 13 20 -How much does the 10th unit of output add to long-run total cost?

(Multiple Choice)

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Question 89

If there are no fixed costs in the long run, how can it be said that economies of scale arise from spreading fixed costs over more units of output?

(Multiple Choice)

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Question 90

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?

(Multiple Choice)

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Question 91

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

(Multiple Choice)

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Question 92

Refer to the following: -The shift from I to II was due to

(Multiple Choice)

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Question 93

Refer to the following: -As you move from point B to point C,

(Multiple Choice)

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Question 94

The expansion path shows

(Multiple Choice)

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Question 95

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?

(Multiple Choice)

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Question 96

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 97

Showing 81 - 97 of 97

-As you move from input combination A to input combination C,

Refer to the following: A 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. -In equilibrium,

Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. Optimal Imput Choice Units of Output Units of Capital Units of Labor 10 6 5 20 8 10 30 13 20 -When output is 20 units, what is long-run average cost?

The slope of an isoquant is

Refer to the following: The price of capital is $100 per unit. -Which of the following combinations of capital and labor lies on the expansion path?

Economies of scale exist when

Refer to the following: Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. Optimal Imput Choice Units of Output Units of Capital Units of Labor 10 6 5 20 8 10 30 13 20 -How much does the 10th unit of output add to long-run total cost?

If there are no fixed costs in the long run, how can it be said that economies of scale arise from spreading fixed costs over more units of output?

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

Refer to the following: -The shift from I to II was due to

Refer to the following: -As you move from point B to point C,

The expansion path shows

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