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The function describing the boundary of the production set is called Select one: O a. The boundary function. O b. The production function. O c. The isoquant. O d. The power function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The function describing the boundary of the production set is called
Select one:
O a. The boundary function.
O b. The production function.
O C. The isoquant.
O d. The power function.

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Step 1: Define the Production Set

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3
Consider the following figure for short run production: Total Product Stage I Stage II Stage III В E Labor
Which of the following is the best description of a production 'isoquant'? The set of all inputs which generate the same level of output. O The level of profit which makes the firm indifferent between producing or not producing. The input combinations which generate a positive level of profit. The marginal impact on profit of increasing inputs by 1 unit. O The input combinations which generate a given level of profit.
With a production function like Y=zN, which of the following must be true at the optimum? A).The marginal product of labor is smaller than real wage. B).The marginal product of labor is bigger than real wage. C).The representative firm makes positive profits. D). Profits of the representative firm are zero.
Find the out the returns to scale for the following firms. Raytheon has a production function Q = KL and Wal-Mart has production function Q = L + K2 Show your work or explain why.
The elasticity of substitution of a Cobb-Douglas production function is constant alongthe whole range of any isoquant, and is equal to 1. Can you show this property that the elasticityof substitution is equal to one everywhere? Is the elasticity of substitution for a CES (ConstantElasticity of Substitution) production function the same?Kindly explain the answer to me.
ONLY answer question b. relative to question a.
QUESTION 20 According to the law of diminishing return in short run O If we double all inputs, output will decrease by more than double O If we double all inputs, output will increase by less than double O If we double all inputs, output will increase by double O as we hire more labors, while other inputs are fixed, the marginal product of exah extra labor will decrease QUESTION 21 Which of the following statements is true? The marginal and average product curves intersect at the maximum level of output. O The marginal product curve always has a positive slope. O At every output level the marginal product curve lies above the average product curve. O The marginal product = average product curves when average product is at its maximum. Click Save and Submit to save and submit. Click Save All Answers to save all answers. DEL