Question 1

In the production of bicycles an increase of 2 percent in the level of capital and labor respectively will generate an increase of 1 percent in the production of bicycles.From this information we know that the production of bicycles exhibits:

Accepted Answer

Decreasing returns to scale occur when a proportional increase in all inputs leads to a less than proportional increase in output. Here, a 2% increase in both capital and labor results in only a 1% increase in production, indicating decreasing returns to scale.

Question 2

Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.

Accepted Answer

The answer of Sketch a long-run production function with isoquants...

Question 3

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the marginal product equations of both inputs.

Accepted Answer

The answer of (Appendix)In the production function Q = 10L^1/2K^1/2calculate...

Question 4

(Appendix) Suppose the production function for widgets is Q = (KL)^½.If capital is fixed at 4 units, what is the marginal product of labor when you produce 10 units of output?

Accepted Answer

The answer of (Appendix) Suppose the production function for widgets...

Question 5

(Appendix) Which of the following production functions exhibits increasing returns to scale?

Accepted Answer

A production function exhibits increasing returns to scale if doubling all of the inputs leads to a more than proportional increase in output. In option B, we can see that doubling all the inputs (K, L, and P0) will more than double the output, implying increasing returns to scale. Option A exhibits constant returns to scale, Option C exhibits decreasing returns to scale, and Option D exhibits constant returns to scale.

Question 6

(Appendix)In the production function Q = 10L^1/2K^1/2if the inputs are quadrupled, are there economies of scale?

Accepted Answer

The answer of (Appendix)In the production function Q = 10L^1/2K^1/2if...

Question 7

(Appendix)In the production function Q = 10L^1/2K^1/2is diminishing returns a characteristic of this production function?

Accepted Answer

The answer of (Appendix)In the production function Q = 10L^1/2K^1/2is...

Question 8

Several years ago while teaching in Russia, I was using a production function like the ones used in this text.Output is a function of labor, capital and technology.One professor asked me how I could talk about production without including all the inputs that go into the process.Write a response to this professor from what you know if a production function.

Accepted Answer

The answer of Several years ago while teaching in Russia,...

Question 9

Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labor is 2.Given this, we know the marginal product of labor must be:

Accepted Answer

The answer of Suppose that at a firm's current level...

Question 10

Sketch graph a standard short-run production function, and identify on it the points where the average product peaks, the marginal product peaks, the marginal product reaches zero, and the average and marginal product intersect.

Accepted Answer

The answer of Sketch graph a standard short-run production function,...

Question 11

(Appendix) A daily production function for calculators is Q = 12L²- L³.Show all your work for the following questions. a) What is the marginal product equation for labor? b) What is the AP_Lfunction?

Accepted Answer

The answer of (Appendix) A daily production function for calculators...

Question 12

For most production function in the short-run output will ___________ if equal amounts of the variable input are added and all other inputs are held fixed.

Accepted Answer

In the short-run, due to the law of diminishing returns, adding equal amounts of a variable input to fixed inputs will initially increase output, but at a decreasing rate.

Question 13

Suppose you are using 10 units of labor in your short-run production process.At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14.Given this, we know that the:

Accepted Answer

The average product of labor is increasing because the marginal product of the last unit of labor (14) is greater than the current average product of labor (10).

Question 14

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital.(Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)

Accepted Answer

The answer of (Appendix)In the production function Q = 10L^1/2K^1/2calculate...

Quiz 9: Production

In the production of bicycles an increase of 2 percent in the level of capital and labor respectively will generate an increase of 1 percent in the production of bicycles.From this information we know that the production of bicycles exhibits:

Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the marginal product equations of both inputs.

(Appendix) Suppose the production function for widgets is Q = (KL) ^½.If capital is fixed at 4 units, what is the marginal product of labor when you produce 10 units of output?

(Appendix) Which of the following production functions exhibits increasing returns to scale?

(Appendix)In the production function Q = 10L^1/2K^1/2if the inputs are quadrupled, are there economies of scale?

(Appendix)In the production function Q = 10L^1/2K^1/2is diminishing returns a characteristic of this production function?

Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labor is 2.Given this, we know the marginal product of labor must be:

Sketch graph a standard short-run production function, and identify on it the points where the average product peaks, the marginal product peaks, the marginal product reaches zero, and the average and marginal product intersect.

(Appendix) A daily production function for calculators is Q = 12L²- L³.Show all your work for the following questions. a) What is the marginal product equation for labor? b) What is the AP_Lfunction?

For most production function in the short-run output will ___________ if equal amounts of the variable input are added and all other inputs are held fixed.

Suppose you are using 10 units of labor in your short-run production process.At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14.Given this, we know that the:

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital.(Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)

Quiz 9: Production

In the production of bicycles an increase of 2 percent in the level of capital and labor respectively will generate an increase of 1 percent in the production of bicycles.From this information we know that the production of bicycles exhibits:

Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.

(Appendix)In the production function Q = 10L1/2K1/2calculate the marginal product equations of both inputs.

(Appendix) Suppose the production function for widgets is Q = (KL) ½.If capital is fixed at 4 units, what is the marginal product of labor when you produce 10 units of output?

(Appendix) Which of the following production functions exhibits increasing returns to scale?

(Appendix)In the production function Q = 10L1/2K1/2if the inputs are quadrupled, are there economies of scale?

(Appendix)In the production function Q = 10L1/2K1/2is diminishing returns a characteristic of this production function?

Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labor is 2.Given this, we know the marginal product of labor must be:

Sketch graph a standard short-run production function, and identify on it the points where the average product peaks, the marginal product peaks, the marginal product reaches zero, and the average and marginal product intersect.

(Appendix) A daily production function for calculators is Q = 12L2- L3.Show all your work for the following questions. a) What is the marginal product equation for labor? b) What is the APL function?

For most production function in the short-run output will ___________ if equal amounts of the variable input are added and all other inputs are held fixed.

Suppose you are using 10 units of labor in your short-run production process.At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14.Given this, we know that the:

(Appendix)In the production function Q = 10L1/2K1/2calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital.(Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the marginal product equations of both inputs.

(Appendix) Suppose the production function for widgets is Q = (KL) ^½.If capital is fixed at 4 units, what is the marginal product of labor when you produce 10 units of output?

(Appendix)In the production function Q = 10L^1/2K^1/2if the inputs are quadrupled, are there economies of scale?

(Appendix)In the production function Q = 10L^1/2K^1/2is diminishing returns a characteristic of this production function?

(Appendix) A daily production function for calculators is Q = 12L²- L³.Show all your work for the following questions. a) What is the marginal product equation for labor? b) What is the AP_Lfunction?

(Appendix)In the production function Q = 10L^1/2K^1/2calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital.(Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)