The production function given by Q = 10(0.7K2 + 0.3L2)0.5 has _____ returns to scale.

A) constant B) instant C) increasing D) decreasing A) constant B) instant C) increasing D) decreasing

Exam 6: Producer Behavior

The production function for laser eye surgery is given by Q = 20K^0.5L^0.5, where Q is the number of laser eye surgeries performed per day, K is the number of eye surgery machines (which is fixed at 2 in the short run), and L is the number of employees. The average product of labor for L = 16 is ____.

(Multiple Choice)

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Question 41

Suppose that a firm's production function is given by Q = 1.23KL (MP_K = 1.23L and MP_L = 1.23K), where Q is quantity of output, K is units of capital, and L is units of labor. The price per unit of labor and capital are $30 and $20, respectively. The minimum cost of producing 600 units of output is $____.

(Multiple Choice)

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Question 42

The production function given by Q = 10(0.7K² + 0.3L²)^0.5 has _____ returns to scale.

(Multiple Choice)

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Question 43

A basic assumption of the short run is that a firm:

(Multiple Choice)

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Question 44

Suppose that a hot dog vendor uses a cart (K) and his time (L) to make and sell hot dogs. The vendor's production function is , where Q is the number of hot dogs per day. Suppose that the rental on hot dog carts is $50 per day and that the vendor wants to produce 500 hot dogs per day. The demand for labor is ____.

(Multiple Choice)

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Question 45

Suppose the production function for a bakery is: Q = 4K^0.4L^0.6 where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. Suppose that the wage rate is $5 per hour , the rental rate of capital is $10 per hour, and the baker wants to produce 4,000 loaves of bread. Use calculus to: a. derive the firm's demand for labor. b. confirm that the demand for labor satisfies the law of demand.

(Essay)

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Question 46

A basic assumption of the long run is that a firm:

(Multiple Choice)

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Question 47

In the short run, the marginal product of labor:

(Multiple Choice)

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Question 48

(Table: Short-run Production I) The short-run production situation for a firm is listed on this table. Complete the table.

(Essay)

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Question 49

(Figure: Capital and Labor IX) The movement in the isocost line is caused by a(n):

(Multiple Choice)

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Question 50

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTS_LK = W/R.

(Multiple Choice)

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Question 51

(Figure: Expansion Path) Find and graph the expansion path.

(Essay)

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Question 52

Suppose the production function for a bakery is: Q = 4K^0.4L^0.6 Where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. The function for the marginal product of labor is ____.

(Multiple Choice)

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Question 53

Suppose that a firm's production function is . Use calculus to find the marginal rate of technical substitution and discuss how MRTS_LK changes as the firm uses more labor, holding output constant.

(Essay)

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Question 54

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? I. More output is produced at point A than at point B. II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B. III) The MRTS_LK is equal at points A and B.

(Multiple Choice)

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Question 55

For the production function Q(K,L) = K^0.5L^0.5, the marginal product of capital is:

(Multiple Choice)

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Question 56

Suppose a firm is producing 2,475 units of output by hiring 50 workers (W = $20 per hour) and 25 units of capital (R = $10 per hour). The marginal product of labor and marginal product of capital are 40 and 25, respectively. Is the firm minimizing the cost of producing 2,475 units of output?

(Multiple Choice)

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Question 57

Suppose the production function for a car manufacturer is: Q = 2K²L² where Q is the number of cars produced, K is the number of machine hours used, and L is the number of worker hours used. Use calculus to: a. determine a function for the marginal product of labor. b. determine a function for the marginal product of capital. c. find the marginal rate of technical substitution. d. discuss how MRTS_LK changes as the firm uses more labor, holding output constant.

(Essay)

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Question 58

The McCue Corporation is a house-painting business. For a standard-sized house, it will use four painters applying paint by brush or two painters applying paint with one paint sprayer. Assume that a paint sprayer can be rented for $50 per day while workers are paid $75 per day. The production function exhibits constant returns to scale. The long-run production function for McCue Corporation will be _ with a total cost equation of _.

(Essay)

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Question 59

Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK = and MP_L = ) If the rental rate of capital R is $30 and the wage rate W is $40, then the cost-minimizing capital-to-labor ratio is K/L = ____.

(Multiple Choice)

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Question 60

Showing 41 - 60 of 142

The production function given by Q = 10(0.7K² + 0.3L²)^0.5 has _____ returns to scale.

A basic assumption of the short run is that a firm:

A basic assumption of the long run is that a firm:

In the short run, the marginal product of labor:

(Table: Short-run Production I) The short-run production situation for a firm is listed on this table. Complete the table.

(Figure: Capital and Labor IX) The movement in the isocost line is caused by a(n):

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTS_LK = W/R.

(Figure: Expansion Path) Find and graph the expansion path.

Suppose the production function for a bakery is: Q = 4K^0.4L^0.6 Where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. The function for the marginal product of labor is ____.

Suppose that a firm's production function is . Use calculus to find the marginal rate of technical substitution and discuss how MRTS_LK changes as the firm uses more labor, holding output constant.

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? I. More output is produced at point A than at point B. II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B. III) The MRTS_LK is equal at points A and B.

For the production function Q(K,L) = K^0.5L^0.5, the marginal product of capital is:

Suppose a firm is producing 2,475 units of output by hiring 50 workers (W = $20 per hour) and 25 units of capital (R = $10 per hour). The marginal product of labor and marginal product of capital are 40 and 25, respectively. Is the firm minimizing the cost of producing 2,475 units of output?

Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK = and MP_L = ) If the rental rate of capital R is $30 and the wage rate W is $40, then the cost-minimizing capital-to-labor ratio is K/L = ____.

Adventures in Microeconomics

Supply and Demand

Using Supply and Demand to Analyze Markets

Consumer Behavior

Individual and Market Demand

Costs

Supply in a Competitive Market

Market Power and Monopoly

Market Power and Pricing Strategies

Imperfect Competition

Game Theory

Factor Markets

Investment, Time, and Insurance

General Equilibrium

Asymmetric Information

Externalities and Public Goods

Behavioral and Experimental Economics

Filters

Exam 6: Producer Behavior

The production function given by Q = 10(0.7K2 + 0.3L2)0.5 has _____ returns to scale.

A basic assumption of the short run is that a firm:

A basic assumption of the long run is that a firm:

In the short run, the marginal product of labor:

(Table: Short-run Production I) The short-run production situation for a firm is listed on this table. Complete the table.

(Figure: Capital and Labor IX) The movement in the isocost line is caused by a(n):

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTSLK = W/R.

(Figure: Expansion Path) Find and graph the expansion path.

Suppose the production function for a bakery is: Q = 4K0.4L0.6 Where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. The function for the marginal product of labor is ____.

Suppose that a firm's production function is . Use calculus to find the marginal rate of technical substitution and discuss how MRTSLK changes as the firm uses more labor, holding output constant.

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? I. More output is produced at point A than at point B. II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B. III) The MRTSLK is equal at points A and B.

For the production function Q(K,L) = K0.5L0.5, the marginal product of capital is:

Suppose a firm is producing 2,475 units of output by hiring 50 workers (W = $20 per hour) and 25 units of capital (R = $10 per hour). The marginal product of labor and marginal product of capital are 40 and 25, respectively. Is the firm minimizing the cost of producing 2,475 units of output?

Suppose the firm's production function is Q = K1/3L2/3, where the MPK = and MPL = ) If the rental rate of capital R is $30 and the wage rate W is $40, then the cost-minimizing capital-to-labor ratio is K/L = ____.

Adventures in Microeconomics

Supply and Demand

Using Supply and Demand to Analyze Markets

Consumer Behavior

Individual and Market Demand

Costs

Supply in a Competitive Market

Market Power and Monopoly

Market Power and Pricing Strategies

Imperfect Competition

Game Theory

Factor Markets

Investment, Time, and Insurance

General Equilibrium

Asymmetric Information

Externalities and Public Goods

Behavioral and Experimental Economics

Filters

The production function given by Q = 10(0.7K² + 0.3L²)^0.5 has _____ returns to scale.

(Figure: Capital and Labor XI) Which of the following statements is (are) TRUE? I. If labor is cheaper than capital, the firm will produce at point B. II) If capital is more expensive than labor, the firm will produce at point A. III) At point A, the MRTS_LK = W/R.

Suppose the production function for a bakery is: Q = 4K^0.4L^0.6 Where Q is the number of loaves of bread produced per day, K is the number of ovens, and L is the number of workers employed. The function for the marginal product of labor is ____.

Suppose that a firm's production function is . Use calculus to find the marginal rate of technical substitution and discuss how MRTS_LK changes as the firm uses more labor, holding output constant.

(Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? I. More output is produced at point A than at point B. II) The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B. III) The MRTS_LK is equal at points A and B.

For the production function Q(K,L) = K^0.5L^0.5, the marginal product of capital is:

Suppose the firm's production function is Q = K^1/3L^2/3, where the MPK = and MP_L = ) If the rental rate of capital R is $30 and the wage rate W is $40, then the cost-minimizing capital-to-labor ratio is K/L = ____.