The production function stated as Y = f(K,L), where, Y is output and K and L are capital and Labor, can be expressed in any of the following, except a. Output is a function of capital and labor. b. Output depends upon the quantity of capital and labor expended. c. Output is influenced by the amount of capital and labor utilized in production. d. Output is independent of the amount of capital and labor used in production.

The production function stated as Y = f(K,L), where, Y is output and K and L are capital and Labor, can be expressed in any of the following, except a. Output is a function of capital and labor. b. Output depends upon the quantity of capital and labor expended. c. Output is influenced by the amount of capital and labor utilized in production. d. Output is independent of the amount of capital and labor used in production.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

If an increase of an equal percentage in all factors of production increases output by the same percentage, then a production function has the property called: Select one: a. constant marginal product of labour cross out b. increasing marginal product of labour cross out C. constant returns to scale cross out d. increasing returns to scale cross out e. decreasing returns to scale cross out O O
The amount of fish caught per week an a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units.Labour Input (No of. Workers) (L) Total Product TPL (Q). From the table below :-(a) Calculate APL and MPL. (b) Graph APL and MPL. Do they have the expected shape? (c) On your graph, identify the three stages of production Labour input (No of Workers) (L) Total Product TP L (Q) 0 0 1 80 2 170 3 300 4 450 5 540 6 620 7 700 8 770 9 830 10 880 11 920 12 950 13 970 14 980 15 985 16 988 17 988
Suppose the productionfunction is given by Q = 5K + 3L. What is the average product of capital when10 units of capital and 10 units of labor are employed? 5 8 3 30
The figure shows the production function of a farmer who produces grain by working certain hours each day. Which of the following statements is correct about this production function? a. The slope of the production function represents the marginal rate of substitution. b. The ceteris paribus assumption means that the farmer becomes more productive as he works more hours. c. A rightward movement from B along the production function implies that the farmer has better technology. d. This production function exhibits economies of scale. e. A technological improvement would shift up the production function
The production function in the image uses a variable amount of labor and a fixed a mount of capital to produce output. The production function exhibits diminishing returns to labor. Is this a short-run or long-run production function? Explain.
Question 3: Consider the following production function: Q = ALa K¹. Assume A > 0. Further assume 0 < a < 1, and 0 < b < 1. 1. What is the Marginal Product of Labor (MPL)? Is it diminishing as L increases? What is the Marginal Product of Capital (MPK)? Is it diminishing as K increases? 2. What is the Average Product of Labor (APL)? What is the Average Product of Capital (APK)? 3. What is the TRSL,K? Is the absolute value of TRSL,K diminishing in K? Is it diminishing in L? 4. Are there constant, decreasing, or increasing returns to scale? How does this depend on the parameters?
From the following production functions 1. Q= a1H + a2L + a3H2 + a4 L2 + a5HL, where ai> 0 2. Q = aH@ Ly, where a, @, y > 0 a. Derive the equation of the relevant isoquant. b. Find out whether the production function is well behaved. c. Examine whether the isoquant is well behaved and therefore represents the behaviour of a rational production. d. Derive equation which describes MRTS of 9ne factor. e. For each equation examine whether the production is homogeneous and if so, what is the degree of homogeneity. Is the equation characterized by IRTS, DRTS or CRTS.
Suppose a soap-manufacturing production process is described by the following equation: Y = a + b log K + с log L Where, Y= Output (number of soaps produced) K=Capital L=Labor a, b and c are constants Suppose 0<a<1, 0< b<1 a. Find the Marginal Product of Labor (MPL) and Marginal Product of Capital (MPK) in the production of soap b. Is MPL diminishing, increasing or constant as L increases? c. Is MPK diminishing, increasing or constant as K increases?
The period of a time when a firm is able to change all of inputs factors of production is called the:A) economic termB) short runC) accounting termD) long run
Question 2: Consider the production function given by Y = min(L,5K). The firm has a fixed amount of capital, K=2, and the pries of output, labor and capital are P, wk, and wl respectively. a. Graph the production function b. Explain how to find the optimal output and labor when the prices are unknown. Show all necessary lines and all possible cases.
Suppose the production function is given by O = 5K - 3L What is the average product of capital when 10 units of capital and 10 units of labor are employed? 8 30
A firm that employs labor and capital has production function q = LK. What returns to scale does the production function exhibit? Select one: a. decreasing returns to scale. b. increasing returns to scale. c. indeterminate. d. constant returns to scale.