If a technological advance reduces the amount of variable resources needed to produce any level of output, then the: a. the AVC curve to shift downward, b. the MC curve to shift downward, c. the ATC curve to shift downward, d. All of the answers given.

Consider the production function: Y = z.f(K,N,L) where Y is output, z is a parameter capturing technology, K is capital, N is labour and L is the area of land. If z increases, then both average and marginal products of all inputs increase. Select one: O True O False

When output volume increases, do variable costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.

When output volume increases, do fixed costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.

When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.

Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a. Variable costs are constant if expressed on a per unit basis.b. Total variable costs increase as the level of activity increases.c. The average fixed cost per unit increases as the level of activity increases.d. Total fixed costs decrease as the level of activity decreases

You are the principal economist at a firm that produces some output y based on the following function: y = f(x1, x2) = x ³ x ² 1. Calculate the marginal product (MP) of both inputs at some arbitrary input bundle (x₁, x₂). Interpret the sign of both. 2. Using your answer in the previous part, calculate OMPT₂/0x₁. Interpret what this means. 3. Calculate the technical rate of substitution between ₁ and x2, i.e., MP/MP₂. 4. Does this production function exhibit increasing, decreasing, or constant returns to scale? Show. 1 5. Lay out a brief, realistic example of x₁, x2, y that fits the dynamics that you calculated.

In nonlinear optimization models, the change in the optimal objective function value per unit increase in the right-hand side of that constraint is called Group of answer choices shadow price range of optimality reduced cost Lagrangian multiplier

How do total variable costs behave as production increases? (Definition of linear: arranged/extending along a straight line) Decrease nonlinearly Increase linearly Stay constant Increase nonlinearly Decrease linearly

When the level of activity decreases, variable cost will increase or decrease ?