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Deck 10: Production and Cost Estimation
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Question
Which of the following is an estimable form of a production function?
A) Q = f(L,K)
B) Q = f(L
)
C)
D) all of the above
E) none of the above
A) Q = f(L,K)
B) Q = f(L
)C)
D) all of the above
E) none of the above
Question
Which of the following represents a short-run cubic production function?
A)
B)
C)
D)
E) all of the above
A)
B)
C)
D)
E) all of the above
Question
With a cubic production function of the form
, in order for the average and marginal product functions to have their theoretical properties, it must be the case that
A) a < 0, b > 0
B) a > 0, b < 0
C) a < 0, b < 0
D) a > 0, b > 0
, in order for the average and marginal product functions to have their theoretical properties, it must be the case that
A) a < 0, b > 0
B) a > 0, b < 0
C) a < 0, b < 0
D) a > 0, b > 0
Question
When estimating a short-run production function of the form
, it is necessary to specify in the computer routine that
A) A < 0.
B) B > 0.
C) the intercept term is forced to equal zero.
D) a and b
E) all of the above
, it is necessary to specify in the computer routine that
A) A < 0.
B) B > 0.
C) the intercept term is forced to equal zero.
D) a and b
E) all of the above
Question
An average variable cost function is estimated as
Which of the following cost functions is associated with this estimate?
A) SMC = 96 - 4Q + 0.1Q2
B) TVC = 96Q - 2Q2 + 0.05Q3
C) TVC = 96Q + 4Q2 + 0.15Q3
D) SMC = 96 - 4Q + 0.15Q2
E) both b and d
Which of the following cost functions is associated with this estimate?
A) SMC = 96 - 4Q + 0.1Q2
B) TVC = 96Q - 2Q2 + 0.05Q3
C) TVC = 96Q + 4Q2 + 0.15Q3
D) SMC = 96 - 4Q + 0.15Q2
E) both b and d
Question
refer to the following:
A short-run production function was estimated as
-What is average product when it is at its maximum level?
A) 3.20
B) 8.75
C) 6.92
D) 6.00
E) 9.40
A short-run production function was estimated as
-What is average product when it is at its maximum level?
A) 3.20
B) 8.75
C) 6.92
D) 6.00
E) 9.40
Question
refer to the following:
A short-run production function was estimated as
-At 20 units of labor, what is average product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
A short-run production function was estimated as
-At 20 units of labor, what is average product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
Question
refer to the following:
A short-run production function was estimated as
-At 20 units of labor, what is marginal product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
A short-run production function was estimated as
-At 20 units of labor, what is marginal product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
Question
refer to the following:
A short-run production function was estimated as
-At 60 units of labor, what is average product?
A) 9.4
B) 8.6
C) 3.7
D) 2.4
E) 6.4
A short-run production function was estimated as
-At 60 units of labor, what is average product?
A) 9.4
B) 8.6
C) 3.7
D) 2.4
E) 6.4
Question
refer to the following:
A short-run production function was estimated as
-At 60 units of labor, what is marginal product?
A) 4.1
B) 1.2
C) 6.3
D) 2.4
E) -2.4
A short-run production function was estimated as
-At 60 units of labor, what is marginal product?
A) 4.1
B) 1.2
C) 6.3
D) 2.4
E) -2.4
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-The estimated short-run marginal cost function (SMC) at Straker Industries is:
A)
B)
C)
D)
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-The estimated short-run marginal cost function (SMC) at Straker Industries is:
A)
B)
C)
D)
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated average variable cost (AVC)?
A) $19.40
B) $67.40
C) $171.40
D) $179.40
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated average variable cost (AVC)?
A) $19.40
B) $67.40
C) $171.40
D) $179.40
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated total cost (TC)?
A) $1,348
B) $1,498
C) $2,348
D) $4,428
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated total cost (TC)?
A) $1,348
B) $1,498
C) $2,348
D) $4,428
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total variable cost (TVC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total variable cost (TVC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Question
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total cost (TC)?
A) $1,000
B) $1,463.20
C) $2,348
D) $4,428
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total cost (TC)?
A) $1,000
B) $1,463.20
C) $2,348
D) $4,428
Question
For the short-run cost function AVC = a + bQ + cQ2,
A) the AVC curve is
-shaped when a < 0, b > 0, and c < 0.
B) the AVC curve is
-shaped when a > 0, b < 0, and c > 0.
C) the corresponding SMC function is
https://storage.examlex.com/TB10434/
.
D) both a and c
E) all of the above
A) the AVC curve is
-shaped when a < 0, b > 0, and c < 0.B) the AVC curve is
-shaped when a > 0, b < 0, and c > 0.C) the corresponding SMC function is
https://storage.examlex.com/TB10434/
.D) both a and c
E) all of the above
Question
A cubic specification for a short-run production function is appropriate when the scatter diagram indicates
A) an S-shaped total product curve.
B) marginal product of labor falls throughout the range of labor usage.
C) total product is decreasing throughout the range of labor usage.
D) an S-shaped marginal product of labor curve.
E) a
-shaped marginal product of labor curve (MP first falls and then rises as labor usage increases.
A) an S-shaped total product curve.
B) marginal product of labor falls throughout the range of labor usage.
C) total product is decreasing throughout the range of labor usage.
D) an S-shaped marginal product of labor curve.
E) a
-shaped marginal product of labor curve (MP first falls and then rises as labor usage increases. Question
When estimating a cubic short-run production function
Using linear regression analysis, you must
A) transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively.
B) suppress the intercept term (regress through the origin).
C) convert to logarithms.
D) both a and b
E) both b and c
Using linear regression analysis, you must
A) transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively.
B) suppress the intercept term (regress through the origin).
C) convert to logarithms.
D) both a and b
E) both b and c
Question
The empirical specification
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a
-shaped TVC curve.
D) both b and c
E) none of the above
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a
-shaped TVC curve.D) both b and c
E) none of the above
Question
The empirical specification
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a family of U-shaped product curves.
D) both a and c
E) none of the above
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a family of U-shaped product curves.
D) both a and c
E) none of the above
Question
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At _______ units of labor, marginal product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At _______ units of labor, marginal product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
Question
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At ________ units of labor, average product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At ________ units of labor, average product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
Question
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Marginal product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Marginal product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
Question
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Average product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Average product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
Question
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00
B) $31.67
C) $39.64
D) $43.33
E) $82.00
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00
B) $31.67
C) $39.64
D) $43.33
E) $82.00
Question
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000
Question
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-A short-run marginal cost function is estimated as
https://storage.examlex.com/TB10434/
. Which of the following cost functions is associated with this estimated SMC equation?
A) TVC = 96Q - 2Q2 + 0.05Q3
B) SMC = 96 - 4Q + 0.1Q2
C) TVC = 96Q + 4Q2 + 0.15Q3
D) AVC = 96 - 2Q + 0.05Q2
E) a and d
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-A short-run marginal cost function is estimated as
https://storage.examlex.com/TB10434/
. Which of the following cost functions is associated with this estimated SMC equation?A) TVC = 96Q - 2Q2 + 0.05Q3
B) SMC = 96 - 4Q + 0.1Q2
C) TVC = 96Q + 4Q2 + 0.15Q3
D) AVC = 96 - 2Q + 0.05Q2
E) a and d
Question
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Question
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
Question
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-At _______ units of labor usage, marginal product of labor begins to diminish.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-At _______ units of labor usage, marginal product of labor begins to diminish.
Question
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________.
Now suppose the firm reduces capital usage to 20 units of capital.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________.
Now suppose the firm reduces capital usage to 20 units of capital.
Question
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
Question
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________. The decrease in capital usage has _______________ (increased, decreased, not affected) the marginal and average product of labor.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________. The decrease in capital usage has _______________ (increased, decreased, not affected) the marginal and average product of labor.
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
and obtains the following results:
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-The estimated values of A and B are statistically significant at the (exact) levels, ________ and _________, respectively.
and obtains the following results:
-The estimated values of A and B are statistically significant at the (exact) levels, ________ and _________, respectively.
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-At _______ units of labor usage, marginal product of labor begins to diminish.
When the wage rate is $300, answer the following questions (remembering the relations AP = Q/L; AVC = w/AP; and SMC = w/MP):
and obtains the following results:
-At _______ units of labor usage, marginal product of labor begins to diminish.
When the wage rate is $300, answer the following questions (remembering the relations AP = Q/L; AVC = w/AP; and SMC = w/MP):
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-Average product of labor reaches its maximum value at ________ units of labor.
and obtains the following results:
-Average product of labor reaches its maximum value at ________ units of labor.
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-At the output for part d, average variable cost is $______________ and marginal cost is $____________.
and obtains the following results:
-At the output for part d, average variable cost is $______________ and marginal cost is $____________.
Question
A firm estimates its cubic production function of the following form:
and obtains the following results:
-When the rate of labor usage is 100 units of labor, output is _______ units. Average variable cost is $_________ and marginal cost is $__________
and obtains the following results:
-When the rate of labor usage is 100 units of labor, output is _______ units. Average variable cost is $_________ and marginal cost is $__________
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-Of the three parameter estimates list the estimates that are statistically significant at the 5 percent level: _________________. List the estimates that are significant at the 10 percent level: ________________.
Using time-series data, the estimation procedure produces the following computer output:-Of the three parameter estimates list the estimates that are statistically significant at the 5 percent level: _________________. List the estimates that are significant at the 10 percent level: ________________.
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-Average variable cost reaches its minimum level at ___________ units of output. At its minimum point, average variable cost is $__________.
Using time-series data, the estimation procedure produces the following computer output:-Average variable cost reaches its minimum level at ___________ units of output. At its minimum point, average variable cost is $__________.
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-The estimated marginal cost function is SMC = ____________________.
Using time-series data, the estimation procedure produces the following computer output:-The estimated marginal cost function is SMC = ____________________.
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-The estimated average variable cost function is AVC = ____________________.
Using time-series data, the estimation procedure produces the following computer output:-The estimated average variable cost function is AVC = ____________________.
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-When output is 6,000 units, marginal cost is $___________.
Using time-series data, the estimation procedure produces the following computer output:-When output is 6,000 units, marginal cost is $___________.
Question
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-When output is 6,000 units, average variable cost is $___________.
Using time-series data, the estimation procedure produces the following computer output:-When output is 6,000 units, average variable cost is $___________.
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Full screen (f)
Deck 10: Production and Cost Estimation
1
Which of the following is an estimable form of a production function?
A) Q = f(L,K)
B) Q = f(L )
C)
D) all of the above
E) none of the above
A) Q = f(L,K)
B) Q = f(L
)C)
D) all of the above
E) none of the above
2
Which of the following represents a short-run cubic production function?
A)
B)
C)
D)
E) all of the above
A)
B)
C)
D)
E) all of the above
3
With a cubic production function of the form
, in order for the average and marginal product functions to have their theoretical properties, it must be the case that
A) a < 0, b > 0
B) a > 0, b < 0
C) a < 0, b < 0
D) a > 0, b > 0
, in order for the average and marginal product functions to have their theoretical properties, it must be the case that
A) a < 0, b > 0
B) a > 0, b < 0
C) a < 0, b < 0
D) a > 0, b > 0
a < 0, b > 0
4
When estimating a short-run production function of the form
, it is necessary to specify in the computer routine that
A) A < 0.
B) B > 0.
C) the intercept term is forced to equal zero.
D) a and b
E) all of the above
, it is necessary to specify in the computer routine that
A) A < 0.
B) B > 0.
C) the intercept term is forced to equal zero.
D) a and b
E) all of the above
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5
An average variable cost function is estimated as
Which of the following cost functions is associated with this estimate?
A) SMC = 96 - 4Q + 0.1Q2
B) TVC = 96Q - 2Q2 + 0.05Q3
C) TVC = 96Q + 4Q2 + 0.15Q3
D) SMC = 96 - 4Q + 0.15Q2
E) both b and d
Which of the following cost functions is associated with this estimate?
A) SMC = 96 - 4Q + 0.1Q2
B) TVC = 96Q - 2Q2 + 0.05Q3
C) TVC = 96Q + 4Q2 + 0.15Q3
D) SMC = 96 - 4Q + 0.15Q2
E) both b and d
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6
refer to the following:
A short-run production function was estimated as
-What is average product when it is at its maximum level?
A) 3.20
B) 8.75
C) 6.92
D) 6.00
E) 9.40
A short-run production function was estimated as
-What is average product when it is at its maximum level?
A) 3.20
B) 8.75
C) 6.92
D) 6.00
E) 9.40
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7
refer to the following:
A short-run production function was estimated as
-At 20 units of labor, what is average product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
A short-run production function was estimated as
-At 20 units of labor, what is average product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
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8
refer to the following:
A short-run production function was estimated as
-At 20 units of labor, what is marginal product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
A short-run production function was estimated as
-At 20 units of labor, what is marginal product?
A) 6.0
B) 1.9
C) 6.3
D) 4.0
E) 2.4
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9
refer to the following:
A short-run production function was estimated as
-At 60 units of labor, what is average product?
A) 9.4
B) 8.6
C) 3.7
D) 2.4
E) 6.4
A short-run production function was estimated as
-At 60 units of labor, what is average product?
A) 9.4
B) 8.6
C) 3.7
D) 2.4
E) 6.4
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10
refer to the following:
A short-run production function was estimated as
-At 60 units of labor, what is marginal product?
A) 4.1
B) 1.2
C) 6.3
D) 2.4
E) -2.4
A short-run production function was estimated as
-At 60 units of labor, what is marginal product?
A) 4.1
B) 1.2
C) 6.3
D) 2.4
E) -2.4
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11
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-The estimated short-run marginal cost function (SMC) at Straker Industries is:
A)
B)
C)
D)
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-The estimated short-run marginal cost function (SMC) at Straker Industries is:
A)
B)
C)
D)
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12
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated average variable cost (AVC)?
A) $19.40
B) $67.40
C) $171.40
D) $179.40
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated average variable cost (AVC)?
A) $19.40
B) $67.40
C) $171.40
D) $179.40
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13
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated total cost (TC)?
A) $1,348
B) $1,498
C) $2,348
D) $4,428
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated total cost (TC)?
A) $1,348
B) $1,498
C) $2,348
D) $4,428
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14
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
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15
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total variable cost (TVC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total variable cost (TVC)?
A) $171.40
B) $463.20
C) $1,348
D) $2,348
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16
The following questions refer to the cost regression for Straker Industries shown below.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total cost (TC)?
A) $1,000
B) $1,463.20
C) $2,348
D) $4,428
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form
and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000.DEPENDENT VARIABLE:
?
-If Straker Industries produces 12 units of output, what is estimated total cost (TC)?
A) $1,000
B) $1,463.20
C) $2,348
D) $4,428
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17
For the short-run cost function AVC = a + bQ + cQ2,
A) the AVC curve is -shaped when a < 0, b > 0, and c < 0.
B) the AVC curve is-shaped when a > 0, b < 0, and c > 0.
C) the corresponding SMC function is
https://storage.examlex.com/TB10434/.
D) both a and c
E) all of the above
A) the AVC curve is
-shaped when a < 0, b > 0, and c < 0.B) the AVC curve is
-shaped when a > 0, b < 0, and c > 0.C) the corresponding SMC function is
https://storage.examlex.com/TB10434/
.D) both a and c
E) all of the above
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18
A cubic specification for a short-run production function is appropriate when the scatter diagram indicates
A) an S-shaped total product curve.
B) marginal product of labor falls throughout the range of labor usage.
C) total product is decreasing throughout the range of labor usage.
D) an S-shaped marginal product of labor curve.
E) a -shaped marginal product of labor curve (MP first falls and then rises as labor usage increases.
A) an S-shaped total product curve.
B) marginal product of labor falls throughout the range of labor usage.
C) total product is decreasing throughout the range of labor usage.
D) an S-shaped marginal product of labor curve.
E) a
-shaped marginal product of labor curve (MP first falls and then rises as labor usage increases. Unlock Deck
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19
When estimating a cubic short-run production function
Using linear regression analysis, you must
A) transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively.
B) suppress the intercept term (regress through the origin).
C) convert to logarithms.
D) both a and b
E) both b and c
Using linear regression analysis, you must
A) transform the equation into linear form by defining L3 and L2 as L3 and L2, respectively.
B) suppress the intercept term (regress through the origin).
C) convert to logarithms.
D) both a and b
E) both b and c
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20
The empirical specification
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a-shaped TVC curve.
D) both b and c
E) none of the above
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a
-shaped TVC curve.D) both b and c
E) none of the above
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21
The empirical specification
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a family of U-shaped product curves.
D) both a and c
E) none of the above
Can be used to estimate
A) a short-run cubic production function.
B) short-run cubic cost function.
C) a family of U-shaped product curves.
D) both a and c
E) none of the above
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22
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At _______ units of labor, marginal product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At _______ units of labor, marginal product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
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23
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At ________ units of labor, average product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-At ________ units of labor, average product of labor begins to diminish.
A) 32.21
B) 44.44
C) 66.67
D) 76.66
E) 82.27
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24
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Marginal product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Marginal product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
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25
refer to the following:
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Average product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
A firm estimates its long-run production function to be
Suppose the firm employs 12 units of capital.
-Average product when 10 units of labor are employed is
A) 12,248
B) 13,142
C) 14,287
D) 15,984
E) 30,672
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26
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00
B) $31.67
C) $39.64
D) $43.33
E) $82.00
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-At Greene Enterprises, average variable cost (AVC) reaches its minimum value at $________.
A) $28.00
B) $31.67
C) $39.64
D) $43.33
E) $82.00
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27
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-When Greene's output is 2,000 units, what is total cost (TC)?
A) $144,000
B) $396,000
C) $444,000
D) $642,000
E) $846,000
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28
The following questions refer to Greene Enterprises, Inc., whose manager recently estimated its average variable cost (AVC) function to be
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-A short-run marginal cost function is estimated as
https://storage.examlex.com/TB10434/. Which of the following cost functions is associated with this estimated SMC equation?
A) TVC = 96Q - 2Q2 + 0.05Q3
B) SMC = 96 - 4Q + 0.1Q2
C) TVC = 96Q + 4Q2 + 0.15Q3
D) AVC = 96 - 2Q + 0.05Q2
E) a and d
Greene Enterprises faces total fixed costs (TFC) of $300,000.
-A short-run marginal cost function is estimated as
https://storage.examlex.com/TB10434/
. Which of the following cost functions is associated with this estimated SMC equation?A) TVC = 96Q - 2Q2 + 0.05Q3
B) SMC = 96 - 4Q + 0.1Q2
C) TVC = 96Q + 4Q2 + 0.15Q3
D) AVC = 96 - 2Q + 0.05Q2
E) a and d
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29
Consider the long-run production function Q = 3.0K + 4.5L.
-The marginal rate of technical substitution is ________.
-The marginal rate of technical substitution is ________.
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30
Consider the long-run production function Q = 3.0K + 4.5L.
-The marginal product of labor is ________.
-The marginal product of labor is ________.
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31
Consider the long-run production function Q = 3.0K + 4.5L.
-The marginal product of capital is ________.
-The marginal product of capital is ________.
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32
Consider the long-run production function Q = 3.0K + 4.5L.
-This production function _________ (does, does not) conform to the theoretical properties of a production function.
-This production function _________ (does, does not) conform to the theoretical properties of a production function.
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33
Consider the long-run production function Q = 6LK.
-The marginal rate of technical substitution is ________.
-The marginal rate of technical substitution is ________.
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34
Consider the long-run production function Q = 6LK.
-The marginal product of labor is ________.
-The marginal product of labor is ________.
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35
Consider the long-run production function Q = 6LK.
-The marginal product of capital is ________.
-The marginal product of capital is ________.
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36
Consider the long-run production function Q = 6LK.
-This production function _________ (does, does not) conform to the theoretical properties of a production function.
-This production function _________ (does, does not) conform to the theoretical properties of a production function.
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37
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
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38
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-At _______ units of labor usage, marginal product of labor begins to diminish.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-At _______ units of labor usage, marginal product of labor begins to diminish.
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39
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________.
Now suppose the firm reduces capital usage to 20 units of capital.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________.
Now suppose the firm reduces capital usage to 20 units of capital.
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40
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
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41
The following cubic equation is a long-run production function for a firm:
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.
-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________. The decrease in capital usage has _______________ (increased, decreased, not affected) the marginal and average product of labor.
where Q is the number of units produced per year. Suppose the firm employs 25 units of capital.-When 10 units of labor are employed, marginal product is equal to ____________ and average product is equal to ____________. The decrease in capital usage has _______________ (increased, decreased, not affected) the marginal and average product of labor.
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42
A firm estimates its cubic production function of the following form:
and obtains the following results:
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
and obtains the following results:
-The equations for total product, average product, and marginal product are:
TP = ___________________________
AP = ___________________________
MP = ___________________________
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43
A firm estimates its cubic production function of the following form:
and obtains the following results:
-The estimated values of A and B are statistically significant at the (exact) levels, ________ and _________, respectively.
and obtains the following results:
-The estimated values of A and B are statistically significant at the (exact) levels, ________ and _________, respectively.
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44
A firm estimates its cubic production function of the following form:
and obtains the following results:
-At _______ units of labor usage, marginal product of labor begins to diminish.
When the wage rate is $300, answer the following questions (remembering the relations AP = Q/L; AVC = w/AP; and SMC = w/MP):
and obtains the following results:
-At _______ units of labor usage, marginal product of labor begins to diminish.
When the wage rate is $300, answer the following questions (remembering the relations AP = Q/L; AVC = w/AP; and SMC = w/MP):
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45
A firm estimates its cubic production function of the following form:
and obtains the following results:
-Average product of labor reaches its maximum value at ________ units of labor.
and obtains the following results:
-Average product of labor reaches its maximum value at ________ units of labor.
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46
A firm estimates its cubic production function of the following form:
and obtains the following results:
-At the output for part d, average variable cost is $______________ and marginal cost is $____________.
and obtains the following results:
-At the output for part d, average variable cost is $______________ and marginal cost is $____________.
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47
A firm estimates its cubic production function of the following form:
and obtains the following results:
-When the rate of labor usage is 100 units of labor, output is _______ units. Average variable cost is $_________ and marginal cost is $__________
and obtains the following results:
-When the rate of labor usage is 100 units of labor, output is _______ units. Average variable cost is $_________ and marginal cost is $__________
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48
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-Of the three parameter estimates list the estimates that are statistically significant at the 5 percent level: _________________. List the estimates that are significant at the 10 percent level: ________________.
Using time-series data, the estimation procedure produces the following computer output:-Of the three parameter estimates list the estimates that are statistically significant at the 5 percent level: _________________. List the estimates that are significant at the 10 percent level: ________________.
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49
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-Average variable cost reaches its minimum level at ___________ units of output. At its minimum point, average variable cost is $__________.
Using time-series data, the estimation procedure produces the following computer output:-Average variable cost reaches its minimum level at ___________ units of output. At its minimum point, average variable cost is $__________.
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50
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-The estimated marginal cost function is SMC = ____________________.
Using time-series data, the estimation procedure produces the following computer output:-The estimated marginal cost function is SMC = ____________________.
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51
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-The estimated average variable cost function is AVC = ____________________.
Using time-series data, the estimation procedure produces the following computer output:-The estimated average variable cost function is AVC = ____________________.
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52
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-When output is 6,000 units, marginal cost is $___________.
Using time-series data, the estimation procedure produces the following computer output:-When output is 6,000 units, marginal cost is $___________.
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53
Consider estimation of a short-run average variable cost function of the form
Using time-series data, the estimation procedure produces the following computer output:
-When output is 6,000 units, average variable cost is $___________.
Using time-series data, the estimation procedure produces the following computer output:-When output is 6,000 units, average variable cost is $___________.
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