Question 1

If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by

Accepted Answer

Climate change can cause disruptions in production operations, which can affect the short run production function by lowering it and reducing the numbers on each isoquant. This is because production inputs may become less available or less efficient, causing a decrease in output levels. The other options do not adequately describe the potential effects of climate change on production function graphs.

Question 2

(Appendix) The defining characteristics of increasing returns to scale may be summarized as

Accepted Answer

The defining characteristic of increasing returns to scale is that when both inputs are multiplied by a constant factor, the output increases by more than that constant factor. This can be expressed as F(cK,cL) > cF(K,L). Option A is the only statement that accurately represents this characteristic.

Question 3

What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?

Accepted Answer

As robots become increasingly good at both manual and mental labor, the production function will become more capital-intensive and less labor-intensive. This implies that the marginal product of labor will decrease relative to the marginal product of capital. As a result, the isoquants will become much flatter, indicating that firms can produce the same level of output with less labor and more capital.

Question 4

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 of a production function.
You should focus on the concept of value added production.

Accepted Answer

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

Question 5

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

Accepted Answer

The answer of (Appendix) In the production function Q =...

Question 6

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 7

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 8

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

The production of bicycles exhibits decreasing returns to scale because the proportional increase in inputs (capital and labor) leads to a less than proportional increase in output (production of bicycles).

Question 9

(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 10

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

Question 11

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

Accepted Answer

The answer of (Appendix) In the production function Q =...

Question 12

One of the main differences between production processes among different parts of the world has to do with the quality of capital. Many development economists point out the fact that high-income countries usually have access to more and better capital than less-developed counties. What would be the effect of this difference in terms of isoquants used by high-income countries versus the isoquants used by low-income countries? Use an isoquant map in order to illustrate your answer.

Accepted Answer

The answer of One of the main differences between production...

Question 13

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

Accepted Answer

The answer of (Appendix) In the production function Q =...

Question 14

(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?

Accepted Answer

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

Question 15

(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 16

Karl has a home business that consists of only himself and his computer. If he were to analyze his operations in the form of a long run production function his isoquants would

Accepted Answer

Karl's home business, consisting of only himself and his computer, represents a fixed proportion production process where inputs (his labor and the computer) are used in fixed proportions to produce output. In such cases, the isoquants, which show combinations of inputs that yield the same level of output, are L-shaped. This reflects the fact that neither input can substitute for the other; both are required in fixed amounts to produce any output.

Quiz 8: Production

If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by

(Appendix) The defining characteristics of increasing returns to scale may be summarized as

What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?

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

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.

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.

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

(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^1/2, calculate 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^1/2, if the inputs are quadrupled, are there economies of scale?

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

(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?

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

Karl has a home business that consists of only himself and his computer. If he were to analyze his operations in the form of a long run production function his isoquants would

Quiz 8: Production

If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by

(Appendix) The defining characteristics of increasing returns to scale may be summarized as

What will happen to a typical isoquant if robots become increasingly good at doing manual and mental labor?

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

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.

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.

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

(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 = 10L1/2K1/2, calculate 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 = 10L1/2K1/2, if the inputs are quadrupled, are there economies of scale?

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

(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?

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

Karl has a home business that consists of only himself and his computer. If he were to analyze his operations in the form of a long run production function his isoquants would

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

(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^1/2, calculate 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^1/2, if the inputs are quadrupled, are there economies of scale?

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

(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?