QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product) has constant returns to scale, then O a. soquants must be linear Ob. Each factor of production has constant marginal product Oc Both factors of production must have decreasing marginal product O d At least on factor of production must have decreasing marginal product Oe. Both factors of production must have constant marginal product

QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product) has constant returns to scale, then O a. soquants must be linear Ob. Each factor of production has constant marginal product Oc Both factors of production must have decreasing marginal product O d At least on factor of production must have decreasing marginal product Oe. Both factors of production must have constant marginal product

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following is a table of cost for a toy manufacturing firm. The variable input is labor. Use this table to answer the following question. Average variable Average fixed cost Average Variable Quantity of toys Total costs cost total cost costs $0 $20 $10 A $40 В In the cell B, which number is correct? 10 O 5 none of these options is correct O 15
4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to scale, and diseconomies of scale. Identify each of these sections of the cost curve and explain why each section exemplifies its specific type of return to scale.
Marginal cost is average variable cost when O a. equal to; average variable cost is minimized. O b. greater than; average fixed cost is minimized O c. equal to; average total cost is minimized O d. less than; total cost is maximized If Mark produces five pairs of earrings, his total costs are Number of TVC MC AVC TFC TC Earnings 100 1 50 2 3 46.67 4 300 5 270 O a. $320. O b. $370. O c. $400. O d. $360.
Question 6 A production function defines the output that can be produced: O A. as technology changes over time. B. if the firm is technically efficient. O C. for the average firm. O D. in a given time period if no additional inputs are hired. O E. at the lowest cost, given the inputs available.
O e none of the mentioned CLEAR MY CHOICE ion Economic profits differ from accounting profits because O a all of the mentioned O b. the former is calculated by economists and the latter by accountants out of Oc most firms report economic profits once a year and accounting profits every pay period O d. none of the mentioned Oe many firms own their own capital so accounting profits do not factor this cost P Type here to search %23 1 2 4 & 7 Q E T A S. C V } BY Alt (5 מ א LL 11
6 In the production process, both the average product and marginal product of the variable input rise first, then fall, and then * rise to infinity True O False O
Suppose the inputs of labour and capital each increase by 8% and output also increases by 8%. The production function exhibits_ returns to scale technology. a. Constant O b. Increasing O c. Decreasing O d. Zero
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Which one of the following statement is true about slope of fixed cost: Select one: O a. Slope of fixed cost function changes but changes with the activity levels change O b. Slope of fixed cost function remains constant but changes with the activity levels change O c. Slope of fixed cost function changes but remains linear after the change O d. Slope of fixed cost function changes but remains constant after the change
The short run is defined as the period of time: Select one: O a. in which all inputs are fixed O b. in which at least one input is fixed O c. O d. none of the answers provided is correct in which no inputs are fixed
. What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…