Exam 9: Production and Cost in the Long Run

The following graph shows one of a firm's isocost curves and isoquants. ‪ -At the economically efficient method of producing 4,000 units of output the MRTS will equal _________.

(Short Answer)

4.7/5

(34)

Question 21

refer to the following: The price of labor is $3 per unit. -What is the marginal rate of technical substitution at point B?

(Multiple Choice)

4.9/5

(26)

Question 22

A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP_L = 60 and MP_K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40. To minimize the cost of producing 1,000 units of output the firm should increase____ (labor, capital) and decrease (labor, capital) until _ (w, r, L, K, MP_L, MP_L/w, MP_K, MP_K/r) equals _________ (w, r, L, K, MP_L, MP_L/w, MP_K, MP_K/r).

(Short Answer)

4.9/5

(41)

Question 23

Answer the following: -Input combination D costs $. The firm would not use this combination to produce 3,000 units of output because ___.

(Short Answer)

4.8/5

(40)

Question 24

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. -Economies of scale exist through __ units of output because _ is ________.

(Short Answer)

4.8/5

(40)

Question 25

A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP_L = 60 and MP_K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40. -The firm can increase ____ by one unit while reducing by _ unit(s), and keep output constant. This will reduce cost by $________.

(Short Answer)

4.8/5

(29)

Question 26

A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP_L = 60 and MP_K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40. -To minimize the cost of producing 1,000 units of output the firm will increase ____ and decrease until _ equals _ or, in other words, _ equals _____.

(Short Answer)

4.8/5

(31)

Question 27

refer to the following: -As you move from input combinationAto input combination C,

(Multiple Choice)

4.8/5

(37)

Question 28

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

(Short Answer)

5.0/5

(36)

Question 29

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 firm can increase capital by one unit and decrease labor by _ units while keeping cost constant. This will output by _.

(Short Answer)

4.8/5

(28)

Question 30

Which of the following is (are) characteristics of an isocost curve? The slope shows the rate at which the firm can substitute labor for capital while holding Total cost constant.

(Multiple Choice)

4.9/5

(43)

Question 31

refer to the following: -What is the marginal rate of technical substitution at point D ?

(Multiple Choice)

5.0/5

(31)

Question 32

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. -To maximize output at the given cost the firm will increase ____ and decrease until the MRTS equals _.

(Short Answer)

4.7/5

(33)

Question 33

Using the above table, answer the following questions. -At 80 units of output LTC = $_____ and LAC = $_. Between 60 and 80 units LMC = $_____.

(Short Answer)

4.8/5

(39)

Question 34

refer to the following: The price of capital (r) is $20. -What is the lowest possible cost of producing 5,000 units of output?

(Multiple Choice)

4.9/5

(41)

Question 35

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

(Short Answer)

4.8/5

(31)

Question 36

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. -The optimal input combination is _____ units of labor and _ units of capital. At this combination, total cost of producing 3,000 units is $________.

(Short Answer)

4.9/5

(31)

Question 37

refer to the following: 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 (-)K/)L)?

(Multiple Choice)

4.7/5

(36)

Question 38

The following graph shows one of a firm's isocost curves and isoquants. ‪ -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 _____.

(Short Answer)

4.8/5

(34)

Question 39

Answer the following questions concerning an expansion path. -An expansion path also shows each combination of inputs that maximizes at each _________.

(Short Answer)

4.9/5

(37)

Question 40

Showing 21 - 40 of 52

The following graph shows one of a firm's isocost curves and isoquants. ‪ -At the economically efficient method of producing 4,000 units of output the MRTS will equal _________.

refer to the following: The price of labor is $3 per unit. -What is the marginal rate of technical substitution at point B?

Answer the following: -Input combination D costs $. The firm would not use this combination to produce 3,000 units of output because ___.

refer to the following: -As you move from input combinationAto input combination C,

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

Which of the following is (are) characteristics of an isocost curve? The slope shows the rate at which the firm can substitute labor for capital while holding Total cost constant.

refer to the following: -What is the marginal rate of technical substitution at point D ?

Using the above table, answer the following questions. -At 80 units of output LTC = $_____ and LAC = $_. Between 60 and 80 units LMC = $_____.

refer to the following: The price of capital (r) is $20. -What is the lowest possible cost of producing 5,000 units of output?

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost II is _______________. With isocost II 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 (r) is $20. -At the optimal combination of inputs for producing 14,000 units of output, what is the marginal rate of technical substitution (-)K/)L)?

The following graph shows one of a firm's isocost curves and isoquants. ‪ -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 _____.

Answer the following questions concerning an expansion path. -An expansion path also shows each combination of inputs that maximizes at each _________.

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 one of a firm's isocost curves and isoquants. ‪ -At the economically efficient method of producing 4,000 units of output the MRTS will equal _________.

refer to the following: The price of labor is $3 per unit. -What is the marginal rate of technical substitution at point B?

Answer the following: -Input combination D costs $____________. The firm would not use this combination to produce 3,000 units of output because _______________.

refer to the following: -As you move from input combinationAto input combination C,

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

Which of the following is (are) characteristics of an isocost curve? The slope shows the rate at which the firm can substitute labor for capital while holding Total cost constant.

refer to the following: -What is the marginal rate of technical substitution at point D ?

Using the above table, answer the following questions. -At 80 units of output LTC = $_________ and LAC = $_________. Between 60 and 80 units LMC = $_________.

refer to the following: The price of capital (r) is $20. -What is the lowest possible cost of producing 5,000 units of output?

The following graph shows 2 isocost curves for a firm. The price of capital is $200. -The equation for isocost II is _____________________. With isocost II 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 (r) is $20. -At the optimal combination of inputs for producing 14,000 units of output, what is the marginal rate of technical substitution (-)K/)L)?

Answer the following questions concerning an expansion path. -An expansion path also shows each combination of inputs that maximizes ____________ at each _____________________.

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

Answer the following: -Input combination D costs $. The firm would not use this combination to produce 3,000 units of output because ___.

Using the above table, answer the following questions. -At 80 units of output LTC = $_____ and LAC = $_. Between 60 and 80 units LMC = $_____.

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

Answer the following questions concerning an expansion path. -An expansion path also shows each combination of inputs that maximizes at each _________.