Question 1

Which of the following statements is TRUE in the short run?

Accepted Answer

A)   Generally, labor is a fixed input.
B)   Generally, capital is a fixed input.
C)   Raw materials are generally considered to be fixed inputs.
D)   None of the above.

Question 2

Show that increasing returns to scale can co-exist with diminishing marginal productivity.

Accepted Answer

The production function below illustrate...

Question 3

If a firm doubles inputs and produces three times the output,then there are

Accepted Answer

A)   constant returns to scale.
B)   diminishing marginal product.
C)   decreasing returns to scale.
D)   increasing returns to scale.

Question 4

Jennifer is the only employee of her sole proprietorship.She is entertaining the idea of hiring an additional employee.She knows that on her own she can produce 100 units per day.Jennifer figures that Applicant A will help her produce 175 units per day whereas Applicant B will help her produce 155 units per day.Which of the following statements is most accurate?

Accepted Answer

A)   Applicant B has a marginal product of 75 units.
B)   Applicant B has an average product of 77.5 units.
C)   Applicant A has a marginal product of 75 units.
D)   Applicant A has an average product of 87.5 units.

Question 5

If capital increases by two units,and MRTS is 1,then what is the MPL?

Accepted Answer

A)   2
B)   1/2
C)   1
D)   Not enough information given.

Question 6

Which of the following is an input to the production process?

Accepted Answer

A)   a janitor's time
B)   a cement mixer
C)   Both A and B
D)   None of the above.

Question 7

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

Accepted Answer

A)   increases first and then decreases.
B)   decreases first and then increases.
C)   decreases throughout.
D)   increases throughout.

Question 8

The production of the Tata Nano is an example of

Accepted Answer

A)   organizational changes leading to increased productivity.
B)   decreasing returns to scale.
C)   neutral technical change leading to increases in productivity.
D)   the benefits of being a monopoly producers of the Nano.

Question 9

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal product of labor

Accepted Answer

A)   rises then falls as the amount of capital increases.
B)   falls then rises as the amount of labor increases.
C)   is greater than or equal to the average product of labor for all amounts of labor.
D)   is less than or equal to the average product of labor for all amounts of labor.

Question 10

With capital on the vertical axis and labor on the horizontal axis,vertical isoquants imply that

Accepted Answer

A)   capital and labor are perfect substitutes.
B)   capital and labor must be used together in a certain proportion.
C)   capital is not productive.
D)   labor is not productive.

Question 11

Changing how production is organized cannot result in changes in productivity.

Accepted Answer

A) True 
 B)False

Question 12

During the "computer revolution" of the 1980s and 1990s,many firms replaced old technology with new technology.What might explain why firms don't change technology as quickly today?

Accepted Answer

The marginal rate of technical substitut...

Question 13

Joey cuts grass during the summer.He rents a lawn mower from his dad.Which of the following statements best illustrates the difference between the short run and the long run for Joey?

Accepted Answer

A)   Joey's friends say they will help him, but when he calls them, they say they have other things to do.
B)   When Joey acquires more customers, he responds by working more hours. Next year, he will buy a lawn mower and split the work with his brother.
C)   Some customers pay Joey immediately; others wait till the following week.
D)   Joey has had to turn away some customers because he is already too busy.

Question 14

Which of the following statements is TRUE?

Accepted Answer

A)   Labor is always a variable input.
B)   Capital is always a fixed input.
C)   Materials are always variable inputs.
D)   None of the above.

Question 15

Which of the following is NOT a factor of production?

Accepted Answer

A)   labor
B)   capital
C)   money
D)   materials

Question 16

Amazon.com's purchase of Kiva Systems,intending to use its robots in warehouses.This is an example of

Accepted Answer

A)   neutral technical change.
B)   labor-saving technical change.
C)   division of labor.
D)   economies of scale.

Question 17

If you are running a winery and you need one bottle for every 750ml of wine,then your production function

Accepted Answer

A)   is inefficient.
B)   is considered "fixed-proportion."
C)   will have a diminishing marginal rate of technical substitution.
D)   has downward-sloping, straight line isoquants.

Question 18

With respect to production,the short run is best defined as a time period

Accepted Answer

A)   lasting about six months.
B)   lasting about two years.
C)   in which all inputs are fixed.
D)   in which at least one input is fixed.

Question 19

Decreasing returns to scale may occur as increasing the amount of inputs used

Accepted Answer

A)   increases specialization.
B)   always increases the amount of output produced.
C)   may cause coordination difficulties.
D)   increases efficiency.

Question 20

Let the production function be q=ALᵃKᵇ.The function exhibits decreasing returns to scale if

Accepted Answer

A)   a + b = 1.
B)   a+ b > 1.
C)   a + b 
D)   Cannot be determined with the information given.

Exam 5: Production

Amazon.com's purchase of Kiva Systems,intending to use its robots in warehouses.This is an example of

Correct Answer
verified

Let the production function be q=ALᵃKᵇ.The function exhibits decreasing returns to scale if

Correct Answer
verified

Which of the following is an input to the production process?

Correct Answer
verified

Which of the following statements is TRUE in the short run?

Correct Answer
verified

During the "computer revolution" of the 1980s and 1990s,many firms replaced old technology with new technology.What might explain why firms don't change technology as quickly today?

Correct Answer
verified
The marginal rate of technical substitut...
View Answer

Joey cuts grass during the summer.He rents a lawn mower from his dad.Which of the following statements best illustrates the difference between the short run and the long run for Joey?

Correct Answer
verified

If you are running a winery and you need one bottle for every 750ml of wine,then your production function

Correct Answer
verified

The production of the Tata Nano is an example of

Correct Answer
verified

Decreasing returns to scale may occur as increasing the amount of inputs used

Correct Answer
verified

Which of the following is NOT a factor of production?

Correct Answer
verified

Which of the following statements is TRUE?

Correct Answer
verified

With respect to production,the short run is best defined as a time period

Correct Answer
verified

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

Correct Answer
verified

Correct Answer
verified

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal product of labor

Correct Answer
verified

If a firm doubles inputs and produces three times the output,then there are

Correct Answer
verified

If capital increases by two units,and MRTS is 1,then what is the MPL?

Correct Answer
verified

With capital on the vertical axis and labor on the horizontal axis,vertical isoquants imply that

Correct Answer
verified

Changing how production is organized cannot result in changes in productivity.

Correct Answer
verified

Show that increasing returns to scale can co-exist with diminishing marginal productivity.

Correct Answer
verified
The production function below illustrate...
View Answer

Exam 5: Production

Amazon.com's purchase of Kiva Systems,intending to use its robots in warehouses.This is an example of

Correct AnswerverifiedShow Answer

Let the production function be q=ALᵃKᵇ.The function exhibits decreasing returns to scale if

Correct AnswerverifiedShow Answer

Which of the following is an input to the production process?

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE in the short run?

Correct AnswerverifiedShow Answer

During the "computer revolution" of the 1980s and 1990s,many firms replaced old technology with new technology.What might explain why firms don't change technology as quickly today?

Correct AnswerverifiedThe marginal rate of technical substitut...View AnswerShow Answer

Joey cuts grass during the summer.He rents a lawn mower from his dad.Which of the following statements best illustrates the difference between the short run and the long run for Joey?

Correct AnswerverifiedShow Answer

If you are running a winery and you need one bottle for every 750ml of wine,then your production function

Correct AnswerverifiedShow Answer

The production of the Tata Nano is an example of

Correct AnswerverifiedShow Answer

Decreasing returns to scale may occur as increasing the amount of inputs used

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor of production?

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

With respect to production,the short run is best defined as a time period

Correct AnswerverifiedShow Answer

-The above figure shows the short-run production function for Albert's Pretzels.The average product of labor

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal product of labor

Correct AnswerverifiedShow Answer

If a firm doubles inputs and produces three times the output,then there are

Correct AnswerverifiedShow Answer

If capital increases by two units,and MRTS is 1,then what is the MPL?

Correct AnswerverifiedShow Answer

With capital on the vertical axis and labor on the horizontal axis,vertical isoquants imply that

Correct AnswerverifiedShow Answer

Changing how production is organized cannot result in changes in productivity.

Correct AnswerverifiedShow Answer

Show that increasing returns to scale can co-exist with diminishing marginal productivity.

Correct AnswerverifiedThe production function below illustrate...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The marginal rate of technical substitut...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The production function below illustrate...
View Answer