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Exam 6: Production

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Question 1

Multiple Choice

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For many firms,capital is the production input that is typically fixed in the short run.Which of the following firms would face the longest time required to adjust its capital inputs?

A) Firm that makes DVD players.
B) Computer chip fabricator
C) Flat-screen TV manufacturer
D) Nuclear power plant

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Question 2

Multiple Choice

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The marginal product of an input is

A) total product divided by the amount of the input used to produce this amount of output.
B) the addition to total output that adds nothing to total revenue.
C) the addition to total output that adds nothing to profit.
D) the addition to total output due to the addition of one unit of all other inputs.
E) the addition to total output due to the addition of the last unit of an input,holding all other inputs constant.

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E

Question 3

Multiple Choice

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If the isoquants in an isoquant map are downward sloping but bowed away from the origin (i.e.,concave to the origin) ,then the production technology violates the assumption of:

With increasing returns to scale,isoquants for unit increases in output become

An important factor that contributes to labor productivity growth is:

Does it make sense to consider the returns to scale of a production function in the short run?

Consider the following statements when answering this question; I.If a technology exhibits diminishing returns then it also exhibits decreasing return to scale. II.If a technology exhibits decreasing returns to scale then it also exhibits diminishing returns.

We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift,K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor) .If we use K=10 robots and L=10 workers in order to produce q = 450 autos per shift,then we know that production is:

The short run is

Figure 6.3 -Refer to Figure 6.3.The situation pictured is one of

Figure 6.3 -The situation pictured in Figure 6.3

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?

You are currently using three printing presses and five employees to print 100 sales manuals per hour.If the MRTS at this point is -0.5,then you would be willing to exchange __________ employees for two more printing presses in order to maintain current output.

When labor usage is at 12 units,output is 36 units.From this we may infer that

A straight-line isoquant

When the average product is decreasing,marginal product

You operate a car detailing business with a fixed amount of machinery (capital) ,but you have recently altered the number of workers that you employ per hour.Three employees can generate an average product of 4 cars per person in each hour,and five employees can generate an average product of 3 cars per person in each hour.What is the marginal product of labor as you increase the labor from three to five employees?

Increasing returns to scale in production means

A farmer uses M units of machinery and L hours of labor to produce C tons of corn,with the following production function C = L^0.5M^0.75.This production function exhibits

An isoquant