Consider an economy where the production function is Y = K L¹, with a 0.75. Suppose this year there are 625 units of capital and 4096 workers. What is the marginal product of labour? O 1.265 0.469 00.4 O 1.2 0.061
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- MCQ 45 Suppose the production function exhibits constant returns to scale, with diminishing marginal productivities for both capital and labour. For this function, we would expect a fall in employment and an increase in the capital stock to generate: A a fall in the marginal product of labour and a fall in the marginal product of capital I do not want to answer this question. a fall in the marginal product of labour, but the change in the marginal product of capital can't be determined from the information provided D a rise in the marginal product of labour and a fall in the marginal product of capital E a rise in the marginal product of labour and a rise in the marginal product of capital F a fall in the marginal product of labour and a rise in the marginal product of capital1 10. Consider a production function of the form y=AK 2L² where y is units of output, K is units of capital and L is the number of people employed. How much will output increase by if both capital and labour employed increase by 25%? a. 25% b. 6,250 c. 50% Od. 5,000If, by increasing the qulf, by increasing the quantity of labour used by one unit, the firm can give up 2 units of capital and still produce the same output, then the MRTSLK is: antity of labour used by one unit, the firm can give up 2 units of capital and still produce the same output, then the MRTSLK is: O 4 O 1 O 2 O 0.5
- Question1 Imagine you own a firm with the production function q=f(L,K) = Lº.2 K0.8 a. What is the MPL ? What does this mean economically? b. What is the MPK ? What does this mean economically? c. What is the MRTS? What does this mean economically? d. Does this production function have constant, increasing, or decreasing returns to scale?The figure shows the total product curve for different levels of a variable input, labor. Output Total Product curve АВ с D E Quantity of Labor In the figure, at point C O average product equals marginal product O marginal product is at a maximum total product is increasing at an increasing rate average product is declining but positiveThe question below is based on the table below, which shows the relationship between the number of workers and output of lumber (in tons per day). Number of Workers 0 1 2 3 4 5 O 44 O 19 Total Output of Lumber 22 O 75 0 25 44 60 The marginal physical product of the second worker is? O 25 70 75
- In the table, the marginal product is greatest when the Total Product, Marginal Product, Average Product Labor (workers per day) Total prod- uct (units per day] Mar- Average ginal product prod- uct 3 12 15 O A. first worker is hired. B. second worker is hired. OC. third worker is hired. D. fourth worker is hired. ON 00 N n6 O12M+ 570,0001 Norway 60,000 United States 50,000- Netherlands Denmark •. Germany France 40,000- :UK South Korea Jарan. Italy" • Spain 30,000- Greece Russia 20,000- Mexico Chile Turkey 10,000- 0. 6,400 6,500 6,600 6,700 6,800 6,900 7,000 7,100 7,200 7,300 7,400 7,500 Average annual hours of free time per worker According to the graph: Select one or more: а. UK workers have more free time than Greek workers. b. UK workers have lower GDP per capita than Spanish workers. O c. The relationship between GDP per capita and free time is downward sloping. d. US workers work longer hours than French workers. GDP per capita (USD PPPS)Use the table below to answer the following questions. O a. $6.25. O b. $5. $4.25. Table 10.3.1 Labour TFC TVC TC Output (workers per (teapots per (dollars per (dollars per (dollars per day) 0 day) day) day) 0 Oc с. O d. $25. Oe. $4. 1234 141569 0 5 13 18 day) 20 20 20 20 20 20 - E 100 125 型 20 5 270 5 - 145 Refer to Table 10.3.1, which gives Tania's Teapots' total cost schedule. When output increases from 4 to 9 teapots, the marginal cost of one of the 5 teapots is 45 95
- capital (k) per period 145 O 362 453 O272 O 145 272 453 labor (1) per period 12 Please refer to the graph above. Assume 11, 12, and i3 are all isoquants. What is labor if inputs are used in fixed proportions?Assume that Economyland’s production function is Y = F (K, L) = K 0.5 L 0.5Where Y is output level, K is the amount of capital input, and L is the amount of laborinput. a) What is the per-worker production function, y= f (k) for Economyland? b) Assume that 10 percent of capital depreciates each year and savings rate is 20 percent,find the steady-state level of capital per worker for Economyland. Then find the steady-state levelof income per worker and steady-state level of consumption per worker. c) Is it possible to save too much? Why?The table shows the daily production of Papaya Co., that supplies papayas to hotels and restaurants in Manila Price of 1 kg. =P50, Daily wage per worker = P500 What is the marginal product of each of the 6th to 10th workers? [Select] No. of Total MP (kg) AP (kg) Law of Diminishing marginal returns sets in after how many workers? per per Workers Product (kg) worker worker [Select] O 5 10 5 15 20 25 30 35 0 1500 4500 10500 18000 24000 27000 28000