Consider the following diagram of the per-worker production function (output per worker as a function of capital per worker) Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. Oc. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour Output per worker (S thousands)

Consider the following diagram of the per-worker production function (output per worker as a function of capital per worker) Production function Capital equipment per worker ($ thousands) Which 2 of the following statements are correct? Select one or more: O a. The higher capital per worker is, the higher the marginal product of capital is. O b. The diagram is consistent with the diminishing marginal product of capital. Oc. When workers have less capital, an increase in capital per worker has much more impact than when they already have a lot. O d. The slope of a tangent to the curve shows the marginal product of labour Output per worker (S thousands)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

2
None
Answer fast...
Question 2 All possible combinations of labor and capital that yields the same output level is contained in or graphically shown in O isoquant isocost O production plan O production possibility curve
5. A company that produces auto parts has a production function of Q = 300 L-75 K-5. %3D If L= 250 and K= 25, what is the output of auto parts? If L increases to 350, what is the output of auto parts? What does the change in output show regarding labor as a factor of production?
Output per worker ($ thousands) 0 Select one or more: 0 Capital equipment per worker ($ thousands) Which TWO of the following statements are correct? O a. The slope of the function is the marginal product of capital. b. The figure shows that each extra $ of capital per worker raises output per worker by an equal amount. ✔ C. The function is "convex" (L.e. it has a slope which increases as capital per worker rises). Od. The figure shows that higher capital per worker increases output per worker. Production function
Dead capital is Select one: O A. useful only if employed in a labor-intensive production process. O B. useful only if employed in a capital-intensive production process. O C. unlikely to have any productive use. O D. unlikely to be applied to its most efficient use.
12 L'. ĀK2 L2 where the productivity parameter is equal to 2 . How many units of output can be produced with 25 units of Consider an economy characterized by the production function Y = capital and 36 workers? 20 Using the same production function and factor inputs (capital and labor) as in the previous question, compute the marginal product of labor. Round your answer to the nearest hundredth after the decimal point. 30
as Figure 11-1 D Real GDP per hour worked, YIL v $40 IC 8 T 1 60 Production function, Production function, Production function, Capital per hour worked, KIL Refer to Figure 11-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from Production function 1 to Production function 2 from Production function 2 to Production function 1. from Production function 1 to Production function 3. up along any of the production functions
QUESTION 9 In one day Amazing company produced 50 shirts in 250 labor hours, What is Amazing company's productivity? O a. 1/5 shirts per hour O b. 5 hours per shirts O C. 50 shirts d. 5 shirts.
If a firm has a production function of the form: Q = LK1/2, what can we conclude? The firm has constant marginal returns to labour and increasing marginal returns to capital. O The firm has decreasing marginal returns to labour and increasing marginal returns to capital. The firm has constant marginal returns to labour and constant marginal returns to capital. The firm has constant marginal returns to labour and decreasing marginal returns to capital. O The firm has increasing marginal returns to labour and increasing marginal returns to capital.
Illegal drug traffickers start to bribe judges and corrupt the justice system. What would be the impact on the country's production function? Select one: O a. shift inwards O b. movement downward along the same curve O . remain unchanged O d. shift outwards O e. movement upwards along the same curve