Question 1

A firm has a production function f(x,y)=1.80(x0.80 + y0.80)2 whenever x $\gt$ 0 and y  $\gt$ 0.When the amounts of both inputs are positive,this firm has

Accepted Answer

A)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale if x +y  $\gt$ 1 and decreasing returns to scale otherwise. 
D)  increasing 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)  decreasing returns to scale. 
B)  constant returns to scale. 
C)  increasing returns to scale if x +y  $\gt$ 1 and decreasing returns to scale otherwise. 
D)  increasing 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 2

A firm has a production function f(x,y)=1.40(x0.60 + y0.60)2 whenever x  $\gt$0 and y  $\gt$ 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  $\gt$ 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  $\gt$ 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 3

If the production function is f(x,y)= x+min{x,y},then there are constant returns to scale.

Accepted Answer

A) True 
 B)False

Question 4

The UJava espresso stand needs two inputs,labor and coffee beans,to produce its only output,espresso.Producing an espresso always requires the same amount of coffee beans and the same amount of time.Which of the following production functions would appropriately describe the production process at UJava,where B represents ounces of coffee beans,and L represents hours of labor?

Accepted Answer

A)  Q = min(2B,60L). 
B)  Q = B0.40L0.60. 
C)  Q = B/2 + L/30. 
D)  Q= 0.5B + 0.5L0.5. 
E)  None of the above. 
A)  Q = min(2B,60L). 
B)  Q = B0.40L0.60. 
C)  Q = B/2 + L/30. 
D)  Q= 0.5B + 0.5L0.5. 
E)  None of the above.

Question 5

The UJava espresso stand needs two inputs,labor and coffee beans,to produce its only output,espresso.Producing an espresso always requires the same amount of coffee beans and the same amount of time.Which of the following production functions would appropriately describe the production process at UJava,where B represents ounces of coffee beans,and L represents hours of labor?

Accepted Answer

A)  Q = B0.60L0.40. 
B)  Q =B/2 +L/2. 
C)  Q = min(2B,60L). 
D)  Q = 0.5B +0.5L0.5. 
E)  None of the above. 
A)  Q = B0.60L0.40. 
B)  Q =B/2 +L/2. 
C)  Q = min(2B,60L). 
D)  Q = 0.5B +0.5L0.5. 
E)  None of the above.

Question 6

If the production function is f(x1,x2)=x1x2,then there are constant returns to scale.

Accepted Answer

A) True 
 B)False

Question 7

A firm has the production function f(x,y)=20x3/5 y2/5.The slope of the firm's isoquant at the point (x,y)=(50,70)is (pick the closest one)

Accepted Answer

A)  -1.50. 
B)  -0.67. 
C)  -0.71. 
D)  -2.10. 
E)  -0.36. 
A)  -1.50. 
B)  -0.67. 
C)  -0.71. 
D)  -2.10. 
E)  -0.36.

Question 8

A firm has the production function f(X,Y)=X3/4 Y1/4,where X is the amount of factor x used and Y is the amount of factor y used.On a diagram we put X on the horizontal axis and Y on the vertical axis.We draw some isoquants.Now we draw a straight line on the graph and we notice that wherever this line meets an isoquant,the isoquant has a slope of -.The straight line we drew

Accepted Answer

A)  is a ray through the origin with slope 3. 
B)  is a ray through the origin with slope 4. 
C)  is vertical. 
D)  is horizontal. 
E)  has a negative slope. 
A)  is a ray through the origin with slope 3. 
B)  is a ray through the origin with slope 4. 
C)  is vertical. 
D)  is horizontal. 
E)  has a negative slope.

Question 9

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

Accepted Answer

A)  decreasing returns to scale and diminishing marginal products for factor x. 
B)  increasing returns to scale and decreasing marginal product of 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 products for factor x. 
B)  increasing returns to scale and decreasing marginal product of 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 10

The UJava espresso stand needs two inputs,labor and coffee beans,to produce its only output,espresso.Producing an espresso always requires the same amount of coffee beans and the same amount of time.Which of the following production functions would appropriately describe the production process at UJava,where B represents ounces of coffee beans,and L represents hours of labor?

Accepted Answer

A)  Q = 0.5B + 0.5L0.5. 
B)  Q =B0.80L0.20. 
C)  Q = min(2B,60L). 
D)  Q =B/2+ L/30. 
E)  None of the above. 
A)  Q = 0.5B + 0.5L0.5. 
B)  Q =B0.80L0.20. 
C)  Q = min(2B,60L). 
D)  Q =B/2+ L/30. 
E)  None of the above.

Question 11

A production function has well-defined marginal products at every input combination.If factor x is shown on the horizontal axis and factor y is shown on the vertical axis,the slope of the isoquant through a point (x*,y*)is the negative of the ratio of the marginal product of x to the marginal product of y.

Accepted Answer

A) True 
 B)False

Question 12

A firm has the production function f(x,y)=x1.40y0.90.This firm has

Accepted Answer

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

Question 13

A firm has a production function f(x,y)=1.80(x0.80 +y0.80)3 whenever x  $\gt$0 and y  $\gt$ 0.When the amounts of both inputs are positive,this firm has

Accepted Answer

A)  increasing returns to scale if x + y  $\gt$1 and decreasing returns to scale otherwise. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  increasing 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  $\gt$1 and decreasing returns to scale otherwise. 
B)  decreasing returns to scale. 
C)  constant returns to scale. 
D)  increasing 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 14

A firm has the production function f(x1,x2)=x0.601x0.302.The isoquant on which output is 803/10 has the equation

Accepted Answer

A)  x2 =80x-21. 
B)  x2 =80x3.331. 
C)  x1/x2 =2. 
D)  x2 =80x-0.301. 
E)  x1 =0.30x-0.702. 
A)  x2 =80x-21. 
B)  x2 =80x3.331. 
C)  x1/x2 =2. 
D)  x2 =80x-0.301. 
E)  x1 =0.30x-0.702.

Question 15

If output is produced with two factors of production and with increasing returns to scale,

Accepted Answer

A)  there cannot be diminishing marginal rate of substitution. 
B)  all inputs must have increasing marginal products. 
C)  on a graph of production isoquants,moving along a ray from the origin,output more than doubles as the distance from the origin doubles. 
D)  the marginal product of at least one input must be increasing. 
E)  all inputs must have decreasing marginal products. 
A)  there cannot be diminishing marginal rate of substitution. 
B)  all inputs must have increasing marginal products. 
C)  on a graph of production isoquants,moving along a ray from the origin,output more than doubles as the distance from the origin doubles. 
D)  the marginal product of at least one input must be increasing. 
E)  all inputs must have decreasing marginal products.

Question 16

A firm has the production function f(x,y)= 60x 4/5 y1/5.The slope of the firm's isoquant at the point (x,y)=(40,80)is (pick the closest one)

Accepted Answer

A)  -0.50. 
B)  -4. 
C)  -0.25. 
D) -8. 
A)  -0.50. 
B)  -4. 
C)  -0.25. 
D) -8.

Question 17

For each of the following production functions,comment on the ability to substitute capital for labor.
a.Q = K + L.
b.Q = K0.5L0.5.
c.Q = min(K,L).

Accepted Answer

a.Perfect substituta

Question 18

A production isoquant is a locus of combinations of inputs that are equally profitable.

Accepted Answer

A) True 
 B)False

Question 19

A firm's production function is f(x1,x2)=x1 + 2x2.This means that x2 is twice as expensive as x1.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following production functions exhibit constant returns to scale? In each case y is output and K and L are inputs.(1)y = K1/2 L1/3.(2)y = 3K1/2 L1/2.(3)y =K1/2 = L1/2.(4)y + 2K = 3L.

Accepted Answer

A)  1,2,and 4 
B)  2,3,and 4 
C)  1,3,and 4 
D)  2 and 3 
E)  2 and 4 
A)  1,2,and 4 
B)  2,3,and 4 
C)  1,3,and 4 
D)  2 and 3 
E)  2 and 4

Exam 19:Technology-Part A

A firm has a production function f(x,y)=1.80(x0.80 + y0.80)2 whenever x >\gt> 0 and y >\gt> 0.When the amounts of both inputs are positive,this firm has

A firm has a production function f(x,y)=1.40(x0.60 + y0.60)2 whenever x >\gt> 0 and y >\gt> 0.When the amounts of both inputs are positive,this firm has

If the production function is f(x,y)= x+min{x,y},then there are constant returns to scale.

If the production function is f(x1,x2)=x1x2,then there are constant returns to scale.

A firm has the production function f(x,y)=20x3/5 y2/5.The slope of the firm's isoquant at the point (x,y)=(50,70)is (pick the closest one)

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

A firm has the production function f(x,y)=x1.40y0.90.This firm has

A firm has a production function f(x,y)=1.80(x0.80 +y0.80)3 whenever x >\gt> 0 and y >\gt> 0.When the amounts of both inputs are positive,this firm has

A firm has the production function f(x1,x2)=x0.601x0.302.The isoquant on which output is 803/10 has the equation

If output is produced with two factors of production and with increasing returns to scale,

A firm has the production function f(x,y)= 60x 4/5 y1/5.The slope of the firm's isoquant at the point (x,y)=(40,80)is (pick the closest one)

For each of the following production functions,comment on the ability to substitute capital for labor. a.Q = K + L. b.Q = K0.5L0.5. c.Q = min(K,L).

A production isoquant is a locus of combinations of inputs that are equally profitable.

A firm's production function is f(x1,x2)=x1 + 2x2.This means that x2 is twice as expensive as x1.

Which of the following production functions exhibit constant returns to scale? In each case y is output and K and L are inputs.(1)y = K1/2 L1/3.(2)y = 3K1/2 L1/2.(3)y =K1/2 = L1/2.(4)y + 2K = 3L.

Demand-Part A

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics-Part A

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

A firm has a production function f(x,y)=1.80(x^0.80 + y^0.80)2 whenever x $\gt$ 0 and y $\gt$ 0.When the amounts of both inputs are positive,this firm has

A firm has a production function f(x,y)=1.40(x^0.60 + y^0.60)² whenever x $\gt$ 0 and y $\gt$ 0.When the amounts of both inputs are positive,this firm has

If the production function is f(x₁,x₂)=x₁x₂,then there are constant returns to scale.

A firm has the production function f(x,y)=20x^3/5 y^2/5.The slope of the firm's isoquant at the point (x,y)=(50,70)is (pick the closest one)

A firm has the production function f(x,y)=x^1.40y¹.This firm has

A firm has the production function f(x,y)=x^1.40y^0.90.This firm has

A firm has a production function f(x,y)=1.80(x^0.80 +y^0.80)³ whenever x $\gt$ 0 and y $\gt$ 0.When the amounts of both inputs are positive,this firm has

A firm has the production function f(x₁,x₂)=x^0.60₁x^0.30₂.The isoquant on which output is 80^3/10 has the equation

A firm has the production function f(x,y)= 60x ^4/5 y^1/5.The slope of the firm's isoquant at the point (x,y)=(40,80)is (pick the closest one)

For each of the following production functions,comment on the ability to substitute capital for labor. a.Q = K + L. b.Q = K^0.5L^0.5. c.Q = min(K,L).

A firm's production function is f(x₁,x₂)=x₁ + 2x₂.This means that x₂ is twice as expensive as x₁.

Which of the following production functions exhibit constant returns to scale? In each case y is output and K and L are inputs.(1)y = K^1/2 L^1/3.(2)y = 3K^1/2 L^1/2.(3)y =K^1/2 = L^1/2.(4)y + 2K = 3L.