Question

In the short run in production a firm:

a. has at least one fixed input c. can only change one input

b. has at most one variable input d. can change all of its inputs

A firm’s production function describes the relationship between

a. inputs and cost of production

b. inputs and output

c. output and cost

d. output and revenue

If a firm’s expansion path curves upward at an increasing rate, this implies

a. it uses proportionately more labor than capital as output expands

b. its costs will be increasing at an increasing rate as output expands

c. its production function exhibits increasing returns to scale

d. it uses proportionately more capital than labor as output expands

Answer #1

Answer 1 is A

Because when we assumed in a firm two factors of production labour and capital.

In short run at least one factor is fixed .

But in long run both are variable.

Answer 2 is B

Production function is related to input and output.

Input like labour and capital combination and use this combination producer produce output.

Answer 3is C

Because expansion path is the locus of point of producer equilibrium resulting from changes in total outlay while keeping factors price constant.

So when output grows proportionately more then input.

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1- As a firm expands by adding more of the variable input to
fixed inputs, it experiences:
a) constant returns, diminishing returns, increasing returns
b) diminishing returns, constant returns, increasing returns
c) increasing returns, constant returns, diminishing returns
d) diminishing returns, increasing returns, constant returns
2-
The Production Function is:
a curve concave to the origin
an upside down parabola
A straight line sloping upward
An "S" curve
3-
The production function shows
the relationship between total product, (output or...

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increasing the amount of labor it uses. In the short-run, the
firm's production function is
q = f(L, K),
where q is output, L is workers, and
K
is the fixed number of units of capital.
A specific equation for the production function is given
by:
q = 8LK + 5L2 − 13L3
or ,...

In the case of a short-run production function:
A) all of the inputs are variable.
B) the amount of labor employed is held constant.
C) at least one of the inputs is fixed.
D) all of the inputs are fixed.
Answer:
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production function Consider a firm that produces a single
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labor and k is the quantity of capital. (a) In an appropriate
diagram, illustrate the map of isoquants for the firm’s production
function. (b) Does the...

a firm produces its output (y) using three inputs: capital (K),
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For which input(s) does production exhibit a diminishing
marginal product?
Select one or more:
a. capital
b. labour
c. materials
The firm’s production is characterised by
Select one:
a. decreasing returns to scale.
b. constant returns to scale.
c. increasing returns to scale.

1. Long run average costs rise as output (q) increases
Select one:
a. Economy of Scale
b. Decreasing Returns to Scale
c. Increasing Returns to Scale
d. Constant Returns to Scale
e. Diseconomy of Scale
2.
A production function where the MRTS is constant at all points.
Isoquants are straight lines.
Select one:
a. Production Function
b. Isoquant
c. Perfect Substitutes Production Function
d. Isocost Line
e. Technology Function
f. Fixed-Proportions Production Function
3.
A production function with L-shaped isoquants...

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If the cost of renting capital increases, which of the following
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a) Average fixed cost
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Select one:
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f the productivity of variable factors is decreasing in the
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. (a) Determine marginal product of labor. Show whether or not
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c) Determine the nature of the Return to Scale as exhibited by
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An electronics plant’s production function is Q = L 2K, where Q
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