question

if the firm is technically efficient.

answer

A production function defines the

output that can be produced

output that can be produced

question

technology

answer

A production function assumes a given

question

a production function

answer

A function that indicates the maximum

output per unit of time that a firm can

produce, for every combination of inputs

with a given technology, is called

output per unit of time that a firm can

produce, for every combination of inputs

with a given technology, is called

question

I is true, and II is false

answer

Use the following two statements to

answer this question:

I.

Production functions describe what is

technically feasible when the firm operates

efficiently.

II.

The production function shows the least

cost method of producing a given level of

output.

answer this question:

I.

Production functions describe what is

technically feasible when the firm operates

efficiently.

II.

The production function shows the least

cost method of producing a given level of

output.

question

All of these (labor, capital and equipment, plant size)

answer

Which of the following inputs are

variable in the long run?

variable in the long run?

question

q = 9L

answer

Joe owns a small coffee shop, and his

production function is q = 3KL where q is

total output in cups per hour, K is

the number of coffee machines (capital), and L is the number of employees hired per hour (labor). If Joe's capital is currently fixed at K=3 machines, what is his short run production function

production function is q = 3KL where q is

total output in cups per hour, K is

the number of coffee machines (capital), and L is the number of employees hired per hour (labor). If Joe's capital is currently fixed at K=3 machines, what is his short run production function

question

Q = 100KL^0.5

answer

Suppose there are ten identical

manufacturing firms that produce computer chips with machinery (capital, K) and labor (L), and each firm has a production function of the form q = 10KL

0.5. What is the industry level production function?

manufacturing firms that produce computer chips with machinery (capital, K) and labor (L), and each firm has a production function of the form q = 10KL

0.5. What is the industry level production function?

question

F(K,L) = K + L-1

answer

Which of the following equations based

on capital (K) and labor (L) inputs does not

represent a plausible production function?

on capital (K) and labor (L) inputs does not

represent a plausible production function?

question

marginal product

answer

The slope of the total product curve is

the

the

question

is less than average product

answer

When the average product is

decreasing, marginal product

decreasing, marginal product

question

MP = 5K

answer

Joe owns a coffee house and produces

coffee drinks under the production function

q = 5KL where q is the number of cups

generated per hour, K is the number of

coffee machines (capital), and L is the

number of employees hired per hour (labor).

What is the marginal product of labor?

coffee drinks under the production function

q = 5KL where q is the number of cups

generated per hour, K is the number of

coffee machines (capital), and L is the

number of employees hired per hour (labor).

What is the marginal product of labor?

question

an implicit cost.

answer

In order for a taxicab to be operated in

New York City, it must have a medallion on

its hood. Medallions are expensive, but can be resold, and are therefore an example of

New York City, it must have a medallion on

its hood. Medallions are expensive, but can be resold, and are therefore an example of

question

5

answer

The total cost (TC) of producing

computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the marginal cost?

computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the marginal cost?

question

they are more likely to become takeover targets of profit maximizing firms.

answer

If managers do not choose to

maximize profit, but pursue some other goal such as revenue maximization or growth,

maximize profit, but pursue some other goal such as revenue maximization or growth,

question

-500,000

answer

Conigan Box Company produces

cardboard boxes that are sold in bundles of 1000 boxes. The market is highly

competitive, with boxes currently selling for $100 per thousand. Conigan's total and

marginal cost curves are:

TC = 3,000,000 + 0.001Q^2

MC = 0.002Q

where Q is measured in thousand box

bundles per year. What is Conigan's profit/loss when the company chooses a profit maximizing quantity?

cardboard boxes that are sold in bundles of 1000 boxes. The market is highly

competitive, with boxes currently selling for $100 per thousand. Conigan's total and

marginal cost curves are:

TC = 3,000,000 + 0.001Q^2

MC = 0.002Q

where Q is measured in thousand box

bundles per year. What is Conigan's profit/loss when the company chooses a profit maximizing quantity?