Question

A graph that shows all of the combinations of capital and labor that can be used...

A graph that shows all of the combinations of capital and labor that can be used to produce a given level output is which of the following?

a. A budget line b. An indifference curve
c. An isoquant d. An isocost line

The least-cost method of production is shown at the point of tangency between ________ and the ________ isoquant on an isoquant diagram.

a. indifference curve; highest b. budget line; highest
c. budget line; lowest d. marginal cost curve; lowest

As the price of the input decreases on the horizontal axis of an isoquant graph, the budget line will pivot in which of the following ways?

a. Inward from the horizontal axis b. Inward from the vertical axis
c. Outward from the vertical axis d. Outward from the horizontal axis

___________ is a line on an isoquant diagram that shows the least-cost production points for various levels of output.

a. A minimum marginal cost line b. A minimum efficient scale line
c. An isoquant d. An expansion path
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a What is the slope of the isocost line when capital is on the vertical axis...
a What is the slope of the isocost line when capital is on the vertical axis and labor on the horizontal axis and r is the cost of capital and w the cost of labor? What is the slope of an isoquant at every different point on the isoquant curve? When the isocost and isoquant lines are tangent to each other what is the mathematical expression that shows this tangency? The equation that shows the equality of the tangent position...
3. A firm’s production function is Q=min(K, 3L ). Input prices a re as follows: w=$...
3. A firm’s production function is Q=min(K, 3L ). Input prices a re as follows: w=$ 2 and r=$1. On the optimal choice diagram below, draw the isoquant for Q=12. Calculate the optimal choice of K and L for this level of output as well as the total cost. Then, draw in (with a dotted line) the isocost line consistent with your Total Cost value. It won't let me copy the graph template but it is a simple graph with...
If Ed chooses a combination of goods and services that maximize his utility, then a. Ed’s...
If Ed chooses a combination of goods and services that maximize his utility, then a. Ed’s indifference curve intersects his budget line. b. Ed’s indifference curve lies above his budget line. c. Ed’s indifference curve slopes upward d. Ed’s indifference curve is tangent to his budget line e. Ed needs to get a life To minimize costs for a given level of service, a hospital should a. Set marginal revenue equal to marginal cost b. Attain its highest indifference curve...
1. All of the following are properties of indifference curves except a. Higher indifference curves are...
1. All of the following are properties of indifference curves except a. Higher indifference curves are preferred to lower ones b. Indifference curves do not cross c. Indifference curves are bowed outward d. None of the above 2. If two bundles of good satisfy a consumer equally well, the consumer is said to be a. On her/his budget constraint b. Indifferent between the bundles c. In an equilibrium position d. Optimally satisfied 3. The costs incurred even when no output...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)...
Suppose a firm’s production function is given by Q = L 1/2 , K 1/2. a)   Suppose the firm has a fixed cost FC=6, the price of labor is w = 64 and the price of capital is r = 4. Derive the firm’s total cost function, TC(Q). b)   What is the firm’s marginal cost? c)   Graph the firm’s isoquant for Q = 20 units of output. On the same graph, sketch the firm’s isocost line associated with the total...
In the short run: The difference between Average Total Cost and Average Variable cost at every...
In the short run: The difference between Average Total Cost and Average Variable cost at every level of output is marginal cost The difference between Marginal cost and Average Total Cost is Average Fixed cost. The difference between Average Total Cost and Average Variable cost is Average fixed cost The difference between Average Total Cost and Marginal Cost is Average Variable Cost. In a diagram of an isocost line where capital is on the vertical axis and labor is on...
To minimize costs for a given level of service, a hospital should a. Set marginal revenue...
To minimize costs for a given level of service, a hospital should a. Set marginal revenue equal to marginal cost b. Attain its highest indifference curve c. Provide a level of service such that its isocost and isoquant curves are tangent d. Provide a level of service such that consumer surplus is maximized e. None of the above
Question 1 If you are trying to make yourself as happy as you can be given...
Question 1 If you are trying to make yourself as happy as you can be given the constraints that you face, you are effectively: Select one: a. trying to find the intersection point between two budget constraints. b. trying to find the point on the budget constraint that is on the highest indifference curve. c. trying to find the point where the budget constraint and an indifference curve intersect. d. trying to find the point on an indifference curve that...
3. Nora enjoys fish (F) and chips(C). Her utility function is U(C, F) = 2CF. Her...
3. Nora enjoys fish (F) and chips(C). Her utility function is U(C, F) = 2CF. Her income is B per month. The price of fish is PF and the price of chips is PC. Place fish on the horizontal axis and chips on the vertical axis in the diagrams involving indifference curves and budget lines. (a) What is the equation for Nora’s budget line? (b) The marginal utility of fish is MUF = 2C and the Marginal utility of chips...
Q.16. The limit on the consumption bundles that a consumer can afford is known as o...
Q.16. The limit on the consumption bundles that a consumer can afford is known as o A. An indifference curve o B. The marginal rate of substitution o C. The budget constraint o D. The consumption limit Q.17. Suppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis, and if the price of pizza is $10 and the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT