Question 1

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

Accepted Answer

increasing

Question 2

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

Accepted Answer

the input price rati

Question 3

Suppose that when a firm increases its usage of all inputs by 100%, output increases by less than 100%. The firm's production function exhibits

Accepted Answer

A)  decreasing returns to scale. 
B)  diminishing marginal returns. 
C)  decreasing marginal rate of technical substitution. 
D)  both a and b 
E)  both a and c 
A)  decreasing returns to scale. 
B)  diminishing marginal returns. 
C)  decreasing marginal rate of technical substitution. 
D)  both a and b 
E)  both a and c

Question 4

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, MPS1U1B1LS1U1B0 = 60 and MPS1U1B1KS1U1B0 = 120. The prices of labor and capital are, respectively, w = 30 and r = 40.
-At the combination of inputs the MRTS is __________________ (greater than, less than, equal to) the input price ratio, w/r.

Accepted Answer

The answer of A firm is producing 1,000 units of...

Question 5

The following graph shows a firm's long-run average and marginal cost curves.
  
-From zero to 600 units of output __________ exist. Beyond 600, ________________ exist. Suppose the firm decides to build a plant to produce 900 units of output at the least possible cost. After the plant is built the firm is in the short run with short-run average and marginal cost curves of ATC and MC. (ATC and MC are not shown in the figure.)

Accepted Answer

economies

Question 6

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 C the firm __________________ the cost of producing 3,000 units of output. The MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r.

Accepted Answer

The answer of Use the following figure that shows a...

Question 7

The following graph shows a firm's long-run average and marginal cost curves.
  
-At any output less than 900, _________ is higher than _________. At any output greater than 900, _________ is higher than _________.

Accepted Answer

The answer of The following graph shows a firm's long-run...

Question 8

Answer the following questions concerning an expansion path.
-At each point on an expansion path _________ equals _________ or, alternatively, _________ equals _________.

Accepted Answer

MRTS; the

Question 9

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 20 units of output LTC = $_________ and LAC = $______. Between zero and 20 units LMC = $______.

Accepted Answer

The answer of Using the above table, answer the following...

Question 10

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

Accepted Answer

minimizes

Question 11

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

Accepted Answer

The answer of In the following figure, isoquant I is...

Question 12

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

Accepted Answer

constant r

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

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

Suppose that when a firm increases its usage of all inputs by 100%, output increases by less than 100%. The firm's production function exhibits

The following graph shows a firm's long-run average and marginal cost curves. -At any output less than 900, _____ is higher than _. At any output greater than 900, _ is higher than _____.

Answer the following questions concerning an expansion path. -At each point on an expansion path _____ equals _ or, alternatively, _ equals _____.

Answer the following questions concerning an expansion path. -An expansion path shows each combination of inputs that _ of producing _.

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

A firm increases its usage of all inputs by 20%. -If output increases by 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

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

Suppose that when a firm increases its usage of all inputs by 100%, output increases by less than 100%. The firm's production function exhibits

The following graph shows a firm's long-run average and marginal cost curves. -At any output less than 900, _________ is higher than _________. At any output greater than 900, _________ is higher than _________.

Answer the following questions concerning an expansion path. -At each point on an expansion path _________ equals _________ or, alternatively, _________ equals _________.

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

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

A firm increases its usage of all inputs by 20%. -If output increases by 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 a firm's long-run average and marginal cost curves. -At any output less than 900, _____ is higher than _. At any output greater than 900, _ is higher than _____.

Answer the following questions concerning an expansion path. -At each point on an expansion path _____ equals _ or, alternatively, _ equals _____.

Answer the following questions concerning an expansion path. -An expansion path shows each combination of inputs that _ of producing _.