Question 1

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{   }. If the amount of each input is multiplied by 3, its output will be multiplied by

Accepted Answer

A)  81. 
B)  27. 
C)  243. 
D)  0.04. 
E)  The answer depends on the original choice of x, y, and z. 
A)  81. 
B)  27. 
C)  243. 
D)  0.04. 
E)  The answer depends on the original choice of x, y, and z. A

Question 2

A firm has the production function f(x, y) = x1.10y1. This firm has

Accepted Answer

A)  constant returns to scale. 
B)  decreasing returns to scale and diminishing marginal product for factor x. 
C)  increasing returns to scale and decreasing marginal product for factor x. 
D)  decreasing returns to scale and increasing marginal product for factor x. 
E)  None of the above. 
A)  constant returns to scale. 
B)  decreasing returns to scale and diminishing marginal product for factor x. 
C)  increasing returns to scale and decreasing marginal product for factor x. 
D)  decreasing returns to scale and increasing marginal product for factor x. 
E)  None of the above. E

Question 3

This problem will be easier if you have done Problem 1. A firm has the production function $f(x1, x2) = x0.401x0.202. The isoquant on which output is   has the equation

Accepted Answer

A)  x2 = 50x51. 
B)  x2 = 50x-0.201. 
C)  = 2. 
D)  x2 = 50x-21. 
E)  x1 = 0.20x-0.802. 
A)  x2 = 50x51. 
B)  x2 = 50x-0.201. 
C)  = 2. 
D)  x2 = 50x-21. 
E)  x1 = 0.20x-0.802. D

Question 4

In Problem 8, if a = 2.40, b = 0.50, and c = 1, the marginal products of x1, x2, and x3 (in this order) are

Accepted Answer

A)  increasing, decreasing, and constant. 
B)  all increasing. 
C)  all decreasing. 
D)  decreasing, increasing, and decreasing. 
E)  all increasing if A > 1. 
A)  increasing, decreasing, and constant. 
B)  all increasing. 
C)  all decreasing. 
D)  decreasing, increasing, and decreasing. 
E)  all increasing if A > 1.

Question 5

In Problem 3, if the exponents in the production function were 0.30 for x1 and 0.20 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

Accepted Answer

A)  decreasing, would not 
B)  constant, would not 
C)  increasing, would 
D)  constant, would 
E)  decreasing, would 
A)  decreasing, would not 
B)  constant, would not 
C)  increasing, would 
D)  constant, would 
E)  decreasing, would

Question 6

A firm has the production function f(x, y) = x1.40y1.90. This firm has

Accepted Answer

A)  decreasing returns to scale and diminishing marginal product for factor x. 
B)  increasing returns to scale and decreasing marginal product for factor x. 
C)  decreasing returns to scale and increasing marginal product for factor x. 
D)  constant returns to scale. 
E)  None of the above. 
A)  decreasing returns to scale and diminishing marginal product for factor x. 
B)  increasing returns to scale and decreasing marginal product for factor x. 
C)  decreasing returns to scale and increasing marginal product for factor x. 
D)  constant returns to scale. 
E)  None of the above.

Question 7

In Problem 3, if the exponents in the production function were 0.40 for x1 and 0.40 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

Accepted Answer

A)  increasing, would 
B)  decreasing, would not 
C)  constant, would 
D)  constant, would not 
E)  decreasing, would 
A)  increasing, would 
B)  decreasing, would not 
C)  constant, would 
D)  constant, would not 
E)  decreasing, would

Question 8

A firm has a production function f(x, y) = 1.80(x0.80 + y0.80)1 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

Accepted Answer

A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. 
A)  increasing returns to scale. 
B)  constant returns to scale. 
C)  decreasing returns to scale. 
D)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1.

Question 9

In Problem 3, if the exponents in the production function were 0.30 for x1 and 0.30 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

Accepted Answer

A)  constant, would 
B)  constant, would not 
C)  decreasing, would not 
D)  increasing, would 
E)  decreasing, would 
A)  constant, would 
B)  constant, would not 
C)  decreasing, would not 
D)  increasing, would 
E)  decreasing, would

Question 10

A firm has a production function f(x, y) = 0.70(x0.20 + y0.20)4 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

Accepted Answer

A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. 
A)  increasing returns to scale. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1.

Question 11

A firm has the production function f(x, y) = x1.20y2. This firm has

Accepted Answer

A)  constant returns to scale. 
B)  decreasing returns to scale and increasing marginal product for factor x. 
C)  increasing returns to scale and decreasing marginal product for factor x. 
D)  decreasing returns to scale and diminishing marginal product for factor x. 
E)  None of the above. 
A)  constant returns to scale. 
B)  decreasing returns to scale and increasing marginal product for factor x. 
C)  increasing returns to scale and decreasing marginal product for factor x. 
D)  decreasing returns to scale and diminishing marginal product for factor x. 
E)  None of the above.

Question 12

A firm has a production function f(x, y) = 0.70(x0.80 + y0.80)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

Accepted Answer

A)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
B)  increasing returns to scale. 
C)  decreasing returns to scale. 
D)  constant returns to scale. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. 
A)  increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. 
B)  increasing returns to scale. 
C)  decreasing returns to scale. 
D)  constant returns to scale. 
E)  increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1.

Question 13

In Problem 3, if the exponents in the production function were 0.60 for x1 and 0.40 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

Accepted Answer

A)  constant, would not 
B)  increasing, would 
C)  decreasing, would not 
D)  constant, would 
E)  decreasing, would 
A)  constant, would not 
B)  increasing, would 
C)  decreasing, would not 
D)  constant, would 
E)  decreasing, would

Question 14

In Problem 8, if a = 2.10, b = 0.40, and c = 1, the marginal products of x1, x2, and x3 (in this order) are

Accepted Answer

A)  all decreasing. 
B)  increasing, decreasing, and constant. 
C)  decreasing, increasing, and decreasing. 
D)  all increasing. 
E)  all increasing if A > 1. 
A)  all decreasing. 
B)  increasing, decreasing, and constant. 
C)  decreasing, increasing, and decreasing. 
D)  all increasing. 
E)  all increasing if A > 1.

Question 15

A firm has the production function f(x, y) = x1.40y1.40. This firm has

Accepted Answer

A)  constant returns to scale. 
B)  decreasing returns to scale and increasing marginal product for factor x. 
C)  decreasing returns to scale and diminishing marginal product for factor x. 
D)  increasing returns to scale and decreasing marginal product for factor x. 
E)  None of the above. 
A)  constant returns to scale. 
B)  decreasing returns to scale and increasing marginal product for factor x. 
C)  decreasing returns to scale and diminishing marginal product for factor x. 
D)  increasing returns to scale and decreasing marginal product for factor x. 
E)  None of the above.

Question 16

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{   }. If the amount of each input is multiplied by 6, its output will be multiplied by

Accepted Answer

A)  216. 
B)  36. 
C)  6. 
D)  0.16. 
E)  The answer depends on the original choice of x, y, and z. 
A)  216. 
B)  36. 
C)  6. 
D)  0.16. 
E)  The answer depends on the original choice of x, y, and z.

Question 17

In Problem 3, if the exponents in the production function were 0.80 for x1 and 0.20 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

Accepted Answer

A)  constant, would 
B)  decreasing, would not 
C)  increasing, would 
D)  constant, would not 
E)  decreasing, would 
A)  constant, would 
B)  decreasing, would not 
C)  increasing, would 
D)  constant, would not 
E)  decreasing, would

Question 18

In Problem 8, if a = 2.10, b = 1.10, and c = 1.20, the marginal products of x1, x2, and x3 (in this order) are

Accepted Answer

A)  all increasing. 
B)  decreasing, increasing, and decreasing. 
C)  all decreasing. 
D)  increasing, decreasing, and constant. 
E)  all increasing if A > 1. 
A)  all increasing. 
B)  decreasing, increasing, and decreasing. 
C)  all decreasing. 
D)  increasing, decreasing, and constant. 
E)  all increasing if A > 1.

Question 19

This problem will be easier if you have done Problem 1. A firm has the production function $f(x1, x2) = x0.501x0.102. The isoquant on which output is   has the equation

Accepted Answer

A)  = 5. 
B)  x2 = 40x101. 
C)  x2 = 40x-51. 
D)  x2 = 40x-0.101. 
E)  x1 = 0.10x-0.902. 
A)  = 5. 
B)  x2 = 40x101. 
C)  x2 = 40x-51. 
D)  x2 = 40x-0.101. 
E)  x1 = 0.10x-0.902.

Question 20

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{   }. If the amount of each input is multiplied by 6, its output will be multiplied by

Accepted Answer

A)  6. 
B)  36. 
C)  0.16. 
D)  216. 
E)  The answer depends on the original choice of x, y, and z. 
A)  6. 
B)  36. 
C)  0.16. 
D)  216. 
E)  The answer depends on the original choice of x, y, and z.

Exam 17: A: Technology

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{ }. If the amount of each input is multiplied by 3, its output will be multiplied by

A firm has the production function f(x, y) = x1.10y1. This firm has

This problem will be easier if you have done Problem 1. A firm has the production function $f(x1, x2) = x0.401x0.202. The isoquant on which output is has the equation

In Problem 8, if a = 2.40, b = 0.50, and c = 1, the marginal products of x1, x2, and x3 (in this order) are

In Problem 3, if the exponents in the production function were 0.30 for x1 and 0.20 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has the production function f(x, y) = x1.40y1.90. This firm has

In Problem 3, if the exponents in the production function were 0.40 for x1 and 0.40 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has a production function f(x, y) = 1.80(x0.80 + y0.80)1 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

In Problem 3, if the exponents in the production function were 0.30 for x1 and 0.30 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has a production function f(x, y) = 0.70(x0.20 + y0.20)4 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

A firm has the production function f(x, y) = x1.20y2. This firm has

A firm has a production function f(x, y) = 0.70(x0.80 + y0.80)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

In Problem 3, if the exponents in the production function were 0.60 for x1 and 0.40 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

In Problem 8, if a = 2.10, b = 0.40, and c = 1, the marginal products of x1, x2, and x3 (in this order) are

A firm has the production function f(x, y) = x1.40y1.40. This firm has

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{ }. If the amount of each input is multiplied by 6, its output will be multiplied by

In Problem 3, if the exponents in the production function were 0.80 for x1 and 0.20 for x2, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

In Problem 8, if a = 2.10, b = 1.10, and c = 1.20, the marginal products of x1, x2, and x3 (in this order) are

This problem will be easier if you have done Problem 1. A firm has the production function $f(x1, x2) = x0.501x0.102. The isoquant on which output is has the equation

A firm uses 3 factors of production. Its production function is f(x, y, z) = min{ }. If the amount of each input is multiplied by 6, its output will be multiplied by

Budget Constraint

A: Budget Constraint

Preferences

A: Preferences

Utility

A: Utility

Choice

A: Choice

Demand

A: Demand

Revealed Preference

A: Revealed Preference

Slutsky Equation

A: Slutsky Equation

Buying and Selling

A: Buying and Selling

Intertemporal Choice

A: Intertemporal Choice

Asset Markets

A: Asset Markets

Uncertainty

A: Uncertainty

Risky Assets

A: Risky Assets

Consumers Surplus

A: Consumers Surplus

Market Demand

A: Market Demand

Equilibrium

A: Equilibrium

Auctions

A: Auctions

Technology

Profit Maximization

A: Profit Maximization

Cost Minimization

A: Cost Minimization

Cost Curves

A: Cost Curves

Firm Supply

A: Firm Supply

Industry Supply

A: Industry Supply

Monopoly

A: Monopoly

Monopoly Behavior

A: Monopoly Behavior

Factor Markets

A: Factor Markets

Oligopoly

A: Oligopoly

Game Theory

A: Game Theory

Game Applications

A: Game Applications

Behavioral Economics

Exchange

A: Exchange

Production

A firm has the production function f(x, y) = x^1.10y¹. This firm has

This problem will be easier if you have done Problem 1. A firm has the production function $f(x₁, x₂) = x^0.40₁x^0.20₂. The isoquant on which output is has the equation

In Problem 8, if a = 2.40, b = 0.50, and c = 1, the marginal products of x₁, x₂, and x₃ (in this order) are

In Problem 3, if the exponents in the production function were 0.30 for x₁ and 0.20 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has the production function f(x, y) = x^1.40y^1.90. This firm has

In Problem 3, if the exponents in the production function were 0.40 for x₁ and 0.40 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has a production function f(x, y) = 1.80(x^0.80 + y^0.80)¹ whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

In Problem 3, if the exponents in the production function were 0.30 for x₁ and 0.30 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

A firm has a production function f(x, y) = 0.70(x^0.20 + y^0.20)⁴ whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

A firm has the production function f(x, y) = x^1.20y². This firm has

A firm has a production function f(x, y) = 0.70(x^0.80 + y^0.80)² whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

In Problem 3, if the exponents in the production function were 0.60 for x₁ and 0.40 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

In Problem 8, if a = 2.10, b = 0.40, and c = 1, the marginal products of x₁, x₂, and x₃ (in this order) are

A firm has the production function f(x, y) = x^1.40y^1.40. This firm has

In Problem 3, if the exponents in the production function were 0.80 for x₁ and 0.20 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

In Problem 8, if a = 2.10, b = 1.10, and c = 1.20, the marginal products of x₁, x₂, and x₃ (in this order) are

This problem will be easier if you have done Problem 1. A firm has the production function $f(x₁, x₂) = x^0.50₁x^0.10₂. The isoquant on which output is has the equation