Exam 8: Production

(Appendix) A daily production function for calculators is Q = 12L² - L³. Show all your work for the following questions. a) What is the marginal product equation for labor? b) What is the APL function?

If a chef and her equipment transform $50 worth of raw foodstuff into a meal with a total value of $150, the resulting output would be

What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?

Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.

Say you own a Mexican place that produces, among other things, Mexican burritos. The marginal product of your last worker was 5. If the marginal rate of technical substitution between capital and labor is 0.5, then marginal product of capital is

Say you own a Mexican place that produces, among other things, Mexican burritos. Your production of burritos is given by the equation Q = 6KL2, where Q is the amount of burritos, K is the amount of capital and L is the amount of labor. How many workers would you need to use in order to minimize the cost of producing 100 burritos when the capital is, K, is 20?

Suppose you are using 10 units of labor in your short-run production process. At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14. Given this, we know that the

(Appendix) In the production function Q = 10L^1/2K^1/2, is diminishing returns a characteristic of this production function?

If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by

Say you are the owner of a Pizza place. You know that when you produce 10 pizzas, the average product of each of your workers is 10, and the marginal product of your last worker is 15. From this information you know that

Returns to scale refers to

In a typical short-run production function, before diminishing returns set in, the slope of the total product curve

In conceptual production functions, technological change is

In the long run

Geometrically, the marginal product

If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that

If capital and labor are perfect substitutes in a production function, the isoquants for this function will be

In a value added production function like the one used in the text, raw materials are

The average product of a variable input

For production functions with decreasing returns to scale, a proportional increase in output