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Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce 1 unit of output Using Techniques Units of Variable K Inputs L B 12 2 units of output 14 12 20 3 units of output 16 12 B 12 22 26) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Answer. B Dif: 2 Topic: Costs in the Short Run Skill: Analytic 27) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is A) $16. B) $100 O $120. D) $220. Answer: B Diff: 2 Tepic: Costs in the Short Run Skill: Analytic 28) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is A) $100. C) $220. B) $120. D) indeterminate from this information Answer: D Diff: 2 Topic: Costs in the Short Run Skill: Analytic

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce 1 unit of output Using Techniques Units of Variable K Inputs L B 12 2 units of output 14 12 20 3 units of output 16 12 B 12 22 26) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Answer. B Dif: 2 Topic: Costs in the Short Run Skill: Analytic 27) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is A) $16. B) $100 O $120. D) $220. Answer: B Diff: 2 Tepic: Costs in the Short Run Skill: Analytic 28) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is A) $100. C) $220. B) $120. D) indeterminate from this information Answer: D Diff: 2 Topic: Costs in the Short Run Skill: Analytic

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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sub= 24 can you please explain the answers of question given
Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output B 12 2 units of output A 14 12 20 3 units of output 16 12 B 12 22 26) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Answer. B Diff: 2 Topic: Costs in the Short Run Skill: Analytic 27) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is A) $16. B) $100 O $120. D) $220. Answer: B Diff: 2 Topic: Costs in the Short Run Skill: Analytic 28) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is A) $100. C) $220. B) $120. D) indeterminate from this information Answer: D Diff: 2 Topic: Costs in the Short Run Skill: Analytic 29) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average total cost of producing two unit of output is A) $20. B) $40. C) $90. D) $100. Answer: C Diff: 2 Topic: Costs in the Short Run Skill: Analytic 30) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the marginal cost of producing the third unit of output is A) $30. C) $50. B) $40. D) indeterminate from this information. Answer: B
Transcribed Image Text:Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Produce Using Techniques Units of Variable K Inputs L 1 unit of output B 12 2 units of output A 14 12 20 3 units of output 16 12 B 12 22 26) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, what production technique should this firm use to produce 2 units of output? A) production technique A B) production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given. Answer. B Diff: 2 Topic: Costs in the Short Run Skill: Analytic 27) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is A) $16. B) $100 O $120. D) $220. Answer: B Diff: 2 Topic: Costs in the Short Run Skill: Analytic 28) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is A) $100. C) $220. B) $120. D) indeterminate from this information Answer: D Diff: 2 Topic: Costs in the Short Run Skill: Analytic 29) Refer to Table 8.1. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average total cost of producing two unit of output is A) $20. B) $40. C) $90. D) $100. Answer: C Diff: 2 Topic: Costs in the Short Run Skill: Analytic 30) Refer to Table 8.1. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the marginal cost of producing the third unit of output is A) $30. C) $50. B) $40. D) indeterminate from this information. Answer: B
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