Question 1

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor.  
-In Figure 7-2,at point C _____.

Accepted Answer

A) average product equals marginal product 
B) marginal product is at a maximum 
C) total product is increasing at an increasing rate 
D) average product is declining but positive 
A) average product equals marginal product 
B) marginal product is at a maximum 
C) total product is increasing at an increasing rate 
D) average product is declining but positive A

Question 2

Economists use production functions to _____.

Accepted Answer

A) define what is technically efficient for different combinations of inputs 
B) explain the tradeoff between the use of different inputs in production 
C) maximize profits for a firm 
D) define the marginal utilities associated with the goods produced 
A) define what is technically efficient for different combinations of inputs 
B) explain the tradeoff between the use of different inputs in production 
C) maximize profits for a firm 
D) define the marginal utilities associated with the goods produced A

Question 3

A farmer is growing corn on an acre of land.Output will be 200 bushels if one worker is hired,500 if two,700 if three,850 if four,and 900 if five.The marginal product of the fourth worker is _____ bushels of corn.

Accepted Answer

A) 850 
B) 150 
C) 212.5 
D) 50 
A) 850 
B) 150 
C) 212.5 
D) 50 B

Question 4

The average product of labor at a particular point can be determined:

Accepted Answer

A) by the slope of the total product curve at that point. 
B) by multiplying the total product by the quantity of labor at that point. 
C) by the slope of a line from the origin to the particular point on the total product curve. 
D) by the vertical distance of the average product curve from the marginal product curve. 
A) by the slope of the total product curve at that point. 
B) by multiplying the total product by the quantity of labor at that point. 
C) by the slope of a line from the origin to the particular point on the total product curve. 
D) by the vertical distance of the average product curve from the marginal product curve.

Question 5

Which of the following statements about the marginal rate of technical substitution is correct?

Accepted Answer

A) The MRTS is equal to the ratio of the marginal productivities of the inputs. 
B) The MRTS is equal to the slope of the total product curve. 
C) The MRTS is zero in the long run. 
D) The MRTS is the rate at which one input can be substituted for the other in production while varying the level of output. 
A) The MRTS is equal to the ratio of the marginal productivities of the inputs. 
B) The MRTS is equal to the slope of the total product curve. 
C) The MRTS is zero in the long run. 
D) The MRTS is the rate at which one input can be substituted for the other in production while varying the level of output.

Question 6

Mark is a farmer who faces the production function Q = a + bL + cK,where L is the labor input and K is capital.Show that the law of diminishing returns does not apply to Mark's farm in the short-run.

Accepted Answer

A linear production function of the form

Question 7

The marginal rate of technical substitution:

Accepted Answer

A) equals the marginal product of capital times the marginal product of labor. 
B) measures the rate at which marginal product declines as inputs are increased. 
C) measures the degree to which one input can be substituted for another,output held constant. 
D) is the horizontal distance between two isoquants. 
A) equals the marginal product of capital times the marginal product of labor. 
B) measures the rate at which marginal product declines as inputs are increased. 
C) measures the degree to which one input can be substituted for another,output held constant. 
D) is the horizontal distance between two isoquants.

Question 8

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTSEL)equals:

Accepted Answer

A) MPL/MPE 
B) -$\Delta$E/$\Delta$L 
C) -$\Delta$Q/$\Delta$L 
D) (MPL/$\Delta$
E) ($\Delta$L/MP
E)  
A) MPL/MPE 
B) -$\Delta$E/$\Delta$L 
C) -$\Delta$Q/$\Delta$L 
D) (MPL/$\Delta$
E) ($\Delta$L/MP
E)

Question 9

Suppose you have capital on the vertical axis and labor on the horizontal axis.The slope of the isoquant measures:

Accepted Answer

A) the marginal rate of substitution. 
B) the marginal product of labor. 
C) the marginal product of capital. 
D) the marginal rate of technical substitution of capital for labor. 
A) the marginal rate of substitution. 
B) the marginal product of labor. 
C) the marginal product of capital. 
D) the marginal rate of technical substitution of capital for labor.

Question 10

If isoquants are drawn as right angles,it implies:

Accepted Answer

A) that the two inputs are perfect substitutes for each other. 
B) that the MRTS is constant. 
C) that the inputs must be used in fixed proportions. 
D) the isoquants can be intersecting. 
A) that the two inputs are perfect substitutes for each other. 
B) that the MRTS is constant. 
C) that the inputs must be used in fixed proportions. 
D) the isoquants can be intersecting.

Question 11

Define and then derive the expression for the marginal rate of technical substitution.

Accepted Answer

@#IMG-DLM&_TB1826_00 
The marginal rate of technic

Question 12

The marginal rate of technical substitution equals the ratio of the _____.

Accepted Answer

A) total product of capital and labor 
B) marginal products of the inputs 
C) marginal cost of both inputs 
D) amount of capital employed to the amount of labor employed 
A) total product of capital and labor 
B) marginal products of the inputs 
C) marginal cost of both inputs 
D) amount of capital employed to the amount of labor employed

Question 13

Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor. 
 
-Refer to Figure 7-1.To the left of point B:

Accepted Answer

A) marginal product is rising but average product is falling. 
B) marginal product is rising and is above the average product. 
C) marginal product is falling but average product is rising. 
D) total product is increasing at a decreasing rate. 
A) marginal product is rising but average product is falling. 
B) marginal product is rising and is above the average product. 
C) marginal product is falling but average product is rising. 
D) total product is increasing at a decreasing rate.

Question 14

Use the following table to answer the questions : Table 7-3: shows the combinations of labor and capital required to produce various level of output. 
 
-Refer to Table 7-3.Assume that labor remains fixed while capital is the only variable input used in production.If the firm is currently producing 26 units of output using three units of labor,what is the marginal product of capital at this point?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 15

A production function for widgets will _____.

Accepted Answer

A) show the relationship between the inputs used in the production of widgets and the cost of acquiring these inputs 
B) identify the least quantity of inputs that can be used to produce a given level of widgets 
C) identify the maximum quantity of widgets that can be produced given the budget of the firm 
D) identify the maximum quantity of widgets that can be produced by each specific combination of inputs 
A) show the relationship between the inputs used in the production of widgets and the cost of acquiring these inputs 
B) identify the least quantity of inputs that can be used to produce a given level of widgets 
C) identify the maximum quantity of widgets that can be produced given the budget of the firm 
D) identify the maximum quantity of widgets that can be produced by each specific combination of inputs

Question 16

Use the following figure to answer the questions :
Figure 7-2 shows the total product curve for different levels of a variable input,labor.  
-Let point A be the inflection point.When the quantity of labor employed is between A and D in Figure 7-2:

Accepted Answer

A) marginal product is negative. 
B) marginal product is decreasing. 
C) average product is increasing. 
D) marginal product is increasing at a decreasing rate. 
A) marginal product is negative. 
B) marginal product is decreasing. 
C) average product is increasing. 
D) marginal product is increasing at a decreasing rate.

Question 17

Table 7.1 shows the quantities of labor and capital required to produce various levels of output.
 
Refer to Table 7-1.What is the average product of labor when four units of labor are used?

Accepted Answer

A) 10 
B) 14 
C) 42 
D) 33 
A) 10 
B) 14 
C) 42 
D) 33

Question 18

Use the following table to answer the questions : Table 7-3: shows the combinations of labor and capital required to produce various level of output. 
 
-Refer to Table 7-3.Assume that capital remains fixed while labor is the only variable input used in production.If the firm is currently producing 26 units of output using three units of labor,what is the marginal product of labor at this point?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 19

What is meant by technological efficiency in production?

Accepted Answer

A) Using the latest available technology in production 
B) Producing the maximum possible output from given inputs 
C) Using the least number of inputs in production 
D) Minimizing the cost of production 
A) Using the latest available technology in production 
B) Producing the maximum possible output from given inputs 
C) Using the least number of inputs in production 
D) Minimizing the cost of production

Question 20

Table 7-3 shows the combinations of labor and capital required to produce various level of output.  
Refer to Table 7-3.If the firm is currently producing 26 units of output using three units of labor,what is the marginal rate of technical substitution of labor for capital at this point?

Accepted Answer

A) -1 
B) -2 
C) -3 
D) -4 
A) -1 
B) -2 
C) -3 
D) -4

Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor. -In Figure 7-2,at point C _____.

Economists use production functions to _____.

A farmer is growing corn on an acre of land.Output will be 200 bushels if one worker is hired,500 if two,700 if three,850 if four,and 900 if five.The marginal product of the fourth worker is _____ bushels of corn.

The average product of labor at a particular point can be determined:

Which of the following statements about the marginal rate of technical substitution is correct?

Mark is a farmer who faces the production function Q = a + bL + cK,where L is the labor input and K is capital.Show that the law of diminishing returns does not apply to Mark's farm in the short-run.

The marginal rate of technical substitution:

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTS_EL)equals:

Suppose you have capital on the vertical axis and labor on the horizontal axis.The slope of the isoquant measures:

If isoquants are drawn as right angles,it implies:

Define and then derive the expression for the marginal rate of technical substitution.

The marginal rate of technical substitution equals the ratio of the _____.

Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor. -Refer to Figure 7-1.To the left of point B:

A production function for widgets will _____.

Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor. -Let point A be the inflection point.When the quantity of labor employed is between A and D in Figure 7-2:

Table 7.1 shows the quantities of labor and capital required to produce various levels of output. Refer to Table 7-1.What is the average product of labor when four units of labor are used?

What is meant by technological efficiency in production?

Table 7-3 shows the combinations of labor and capital required to produce various level of output. Refer to Table 7-3.If the firm is currently producing 26 units of output using three units of labor,what is the marginal rate of technical substitution of labor for capital at this point?

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

Exam 7: Production

Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor. -In Figure 7-2,at point C _____.

Economists use production functions to _____.

A farmer is growing corn on an acre of land.Output will be 200 bushels if one worker is hired,500 if two,700 if three,850 if four,and 900 if five.The marginal product of the fourth worker is _____ bushels of corn.

The average product of labor at a particular point can be determined:

Which of the following statements about the marginal rate of technical substitution is correct?

Mark is a farmer who faces the production function Q = a + bL + cK,where L is the labor input and K is capital.Show that the law of diminishing returns does not apply to Mark's farm in the short-run.

The marginal rate of technical substitution:

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTSEL)equals:

Suppose you have capital on the vertical axis and labor on the horizontal axis.The slope of the isoquant measures:

If isoquants are drawn as right angles,it implies:

Define and then derive the expression for the marginal rate of technical substitution.

The marginal rate of technical substitution equals the ratio of the _____.

Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor. -Refer to Figure 7-1.To the left of point B:

A production function for widgets will _____.

Use the following figure to answer the questions : Figure 7-2 shows the total product curve for different levels of a variable input,labor. -Let point A be the inflection point.When the quantity of labor employed is between A and D in Figure 7-2:

Table 7.1 shows the quantities of labor and capital required to produce various levels of output. Refer to Table 7-1.What is the average product of labor when four units of labor are used?

What is meant by technological efficiency in production?

Table 7-3 shows the combinations of labor and capital required to produce various level of output. Refer to Table 7-3.If the firm is currently producing 26 units of output using three units of labor,what is the marginal rate of technical substitution of labor for capital at this point?

An Introduction to Microeconomics

Supply and Demand

The Theory of Consumer Choice

Individual and Market Demand

Using Consumer Choice Theory

Exchange, Efficiency, and Prices

The Cost of Production

Profit Maximization in Perfectly Competitive Markets

Using the Competitive Model

Monopoly

Product Pricing With Monopoly Power

Monopolistic Competition and Oligopoly

Game Theory and the Economics of Information

Using Noncompetitive Market Models

Employment and Pricing of Inputs

Wages, Rent, Interest, and Profit

Using Input Market Analysis

General Equilibrium Analysis and Economic Efficiency

Public Goods and Externalities

Filters

With energy [E] on the horizontal axis and land [L] on the vertical axis,the marginal rate of technical substitution of energy for land (MRTS_EL)equals: