Question 1

The production function f(x,y)=x2/3+ y2/3 has increasing returns to scale.

Accepted Answer

A) True 
 B)False

Question 2

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)= (20,40)is (pick the closest one)

Accepted Answer

A)  -3. 
B)  -0.67. 
C)  -1.50. 
D) -0.50. 
E)  -0.25. 
A)  -3. 
B)  -0.67. 
C)  -1.50. 
D) -0.50. 
E)  -0.25.

Question 3

A firm has the production function f(x,y)=x0.90y0.80.This firm has

Accepted Answer

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

Question 4

The production function f(x,y)=x + y has constant returns to scale.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that the production function is f(x1,x2)=(xa1 +xa2)b,where a and b are positive constants.For what values of a and b is there a diminishing technical rate of substitution?

Accepted Answer

A)  For any value of a if b $\lt$ 1 
B)  For any values of a and b if ab $\lt$ 1 
C)  For any values of a and b if a  $\gt$b 
D)  For any value of b if a $\lt$1 
E)  None of the above. 
A)  For any value of a if b $\lt$ 1 
B)  For any values of a and b if ab $\lt$ 1 
C)  For any values of a and b if a  $\gt$b 
D)  For any value of b if a $\lt$1 
E)  None of the above.

Question 6

For each of the following production functions,draw a diagram showing the general shape of its corresponding isoquant.Comment on the ease at which labor and capital can be substituted for one another relative to the other two production functions.
a.Q = K + L.
b.Q = K0.5L0.5.
c.Q = min(K,L).

Accepted Answer

a.Isoquants are straight lines from the

Question 7

The economist's distinction between the long run and the short run captures the idea that quantities of some factor inputs can be varied in the short run but not in the long run.

Accepted Answer

A) True 
 B)False

Question 8

If the production function is f(x,y)=min{2x+y,x +2y},then there are constant returns to scale.

Accepted Answer

A) True 
 B)False

Exam 19:Technology-Part A

The production function f(x,y)=x2/3+ y2/3 has increasing 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)= (20,40)is (pick the closest one)

A firm has the production function f(x,y)=x0.90y0.80.This firm has

The production function f(x,y)=x + y has constant returns to scale.

Suppose that the production function is f(x1,x2)=(xa1 +xa2)b,where a and b are positive constants.For what values of a and b is there a diminishing technical rate of substitution?

For each of the following production functions,draw a diagram showing the general shape of its corresponding isoquant.Comment on the ease at which labor and capital can be substituted for one another relative to the other two production functions. a.Q = K + L. b.Q = K0.5L0.5. c.Q = min(K,L).

The economist's distinction between the long run and the short run captures the idea that quantities of some factor inputs can be varied in the short run but not in the long run.

If the production function is f(x,y)=min{2x+y,x +2y},then there are constant returns to scale.

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

The production function f(x,y)=x^2/3+ y^2/3 has increasing 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)= (20,40)is (pick the closest one)

A firm has the production function f(x,y)=x^0.90y^0.80.This firm has

Suppose that the production function is f(x₁,x₂)=(x^a₁ +x^a₂)b,where a and b are positive constants.For what values of a and b is there a diminishing technical rate of substitution?

For each of the following production functions,draw a diagram showing the general shape of its corresponding isoquant.Comment on the ease at which labor and capital can be substituted for one another relative to the other two production functions. a.Q = K + L. b.Q = K^0.5L^0.5. c.Q = min(K,L).