Exam 9: Production and Cost in the Long Run

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost I is _______________. With isocost I the firm must give up units of capital to purchase one more unit of labor in the market.

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(Short Answer)

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Question 1

Correct Answer:

Verified

K = 60 - 1.5L; 1.5

refer to the following: 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?

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

Use the following figure that shows a firm's isoquant for producing 3,000 units of output and four isocost curves. Labor and capital each cost $100 per unit. -At point A, the MRTS is (less than, greater than, equal to) the input price ratio, w/r. The total cost of producing 3,000 units of output with input combination A is $.

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Question 3

Correct Answer:

Verified

greater than; $4,000

In the following figure, isoquant I is one of a firm's isoquants: -The marginal rate of technical substitution at point C is _________.

(Short Answer)

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Question 4

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost II is $_, and the price of labor is $_.

(Short Answer)

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Question 5

The following graph shows a firm's long-run average and marginal cost curves. -At 900 units of output ATC = $_ and MC = $_.

(Short Answer)

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Question 6

Using the above table, answer the following questions. -Diseconomies of scale exist beyond __ units of output because _ is _____.

(Short Answer)

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Question 7

A firm is using 20 units of labor and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labor is 50 and the marginal product of capital is 40. The price of labor is $30 and the price of capital is $20. -The MP per dollar of labor is _ and the MP per dollar of capital is _.

(Short Answer)

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Question 8

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?

(Multiple Choice)

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Question 9

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost I is $_, and the price of labor is $_.

(Short Answer)

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Question 10

refer to the following figure: The price of capital is $50 per unit. -What is the minimum cost of producing 400 units of output?

(Multiple Choice)

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Question 11

Answer the following: -The movement from E to F reduces the MP per dollar spent on and increases the MP per dollar spent on . This movement (increased, decreased) total cost by $__.

(Short Answer)

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Question 12

Use the following figure that shows a firm's isoquant for producing 3,000 units of output and four isocost curves. Labor and capital each cost $100 per unit. -By moving from A to B, the firm _______ (increases, decreases) labor usage and _ (increases, decreases) capital usage. At point B the MRTS is _ (greater than, less than, equal to) the input price ratio, w/r. The movement from A to B _ (increased, decreased) total cost by $___.

(Short Answer)

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Question 13

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 14

Answer the following: -At point E, the MP per dollar spent on ____ is less than the MP per dollar spent on . The total cost of producing 3,000 units of output with input combination E is $_.

(Short Answer)

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Question 15

Using the above table, answer the following questions. -At 60 units of output LTC = $_____ and LAC = $_. Between 40 and 60 units LMC = $_____.

(Short Answer)

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Question 16

Answer the following: -At input combination C the MP per dollar spent on labor is __________________ (greater than, less than, equal to) the MP per dollar spent on capital.

(Short Answer)

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Question 17

refer to the following: The price of labor is $3 per unit. -What is the price per unit of capital?

(Multiple Choice)

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Question 18

Using the above table, answer the following questions. refer to the following table in which columns, 1, 2, and 3 are derived from a firm's long-run expansion path. The price of capital is $50 and the price of labor is $30. Using the above table, answer the following questions. -At 40 units of output LTC = $ and LAC = $. Between 20 and 40 units LMC = $__.

(Short Answer)

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Question 19

A firm increases its usage of all inputs by 20%. -If output increases by less than 20%, the firm is in a range of ______________________.

(Short Answer)

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Question 20

Showing 1 - 20 of 52

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost I is _______________. With isocost I the firm must give up units of capital to purchase one more unit of labor in the market.

refer to the following: 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?

In the following figure, isoquant I is one of a firm's isoquants: -The marginal rate of technical substitution at point C is _________.

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost II is $_, and the price of labor is $_.

The following graph shows a firm's long-run average and marginal cost curves. -At 900 units of output ATC = $_ and MC = $_.

Using the above table, answer the following questions. -Diseconomies of scale exist beyond __ units of output because _ is _____.

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?

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost I is $_, and the price of labor is $_.

refer to the following figure: The price of capital is $50 per unit. -What is the minimum cost of producing 400 units of output?

Answer the following: -The movement from E to F reduces the MP per dollar spent on and increases the MP per dollar spent on . This movement (increased, decreased) total cost by $__.

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

Answer the following: -At point E, the MP per dollar spent on ____ is less than the MP per dollar spent on . The total cost of producing 3,000 units of output with input combination E is $_.

Using the above table, answer the following questions. -At 60 units of output LTC = $_____ and LAC = $_. Between 40 and 60 units LMC = $_____.

Answer the following: -At input combination C the MP per dollar spent on labor is __________________ (greater than, less than, equal to) the MP per dollar spent on capital.

refer to the following: The price of labor is $3 per unit. -What is the price per unit of capital?

A firm increases its usage of all inputs by 20%. -If output increases by less than 20%, the firm is in a range of ______________________.

Managers, Profits, and Markets

Demand, Supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

Basic Estimation Techniques

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

Advanced Techniques for Profit Maximization

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

Exam 9: Production and Cost in the Long Run

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost I is _____________________. With isocost I the firm must give up ______ units of capital to purchase one more unit of labor in the market.

refer to the following: 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?

In the following figure, isoquant I is one of a firm's isoquants: -The marginal rate of technical substitution at point C is _________.

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost II is $_________, and the price of labor is $_________.

The following graph shows a firm's long-run average and marginal cost curves. -At 900 units of output ATC = $_________ and MC = $_________.

Using the above table, answer the following questions. -Diseconomies of scale exist beyond ______ units of output because _________ is _________.

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?

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost I is $_________, and the price of labor is $_________.

refer to the following figure: The price of capital is $50 per unit. -What is the minimum cost of producing 400 units of output?

Answer the following: -The movement from E to F reduces the MP per dollar spent on ____________ and increases the MP per dollar spent on ____________. This movement __________________ (increased, decreased) total cost by $____________.

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

Answer the following: -At point E, the MP per dollar spent on ____________ is less than the MP per dollar spent on ____________. The total cost of producing 3,000 units of output with input combination E is $_________.

Using the above table, answer the following questions. -At 60 units of output LTC = $_________ and LAC = $_________. Between 40 and 60 units LMC = $_________.

Answer the following: -At input combination C the MP per dollar spent on labor is __________________ (greater than, less than, equal to) the MP per dollar spent on capital.

refer to the following: The price of labor is $3 per unit. -What is the price per unit of capital?

A firm increases its usage of all inputs by 20%. -If output increases by less than 20%, the firm is in a range of ______________________.

Managers, Profits, and Markets

Demand, Supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

Basic Estimation Techniques

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

Advanced Techniques for Profit Maximization

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost I is _______________. With isocost I the firm must give up units of capital to purchase one more unit of labor in the market.

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost II is $_, and the price of labor is $_.

The following graph shows a firm's long-run average and marginal cost curves. -At 900 units of output ATC = $_ and MC = $_.

Using the above table, answer the following questions. -Diseconomies of scale exist beyond __ units of output because _ is _____.

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The total cost associated with isocost I is $_, and the price of labor is $_.

Answer the following: -The movement from E to F reduces the MP per dollar spent on and increases the MP per dollar spent on . This movement (increased, decreased) total cost by $__.

Answer the following: -At point E, the MP per dollar spent on ____ is less than the MP per dollar spent on . The total cost of producing 3,000 units of output with input combination E is $_.

Using the above table, answer the following questions. -At 60 units of output LTC = $_____ and LAC = $_. Between 40 and 60 units LMC = $_____.