Units ofUnits of Labor, LCapital, K1234150.066.775.580.0266.7100.0120.0133.3375.0120.0150.0171.4480.0133.3171.4200.0This table illustrates aproduction function because capital and laborlong-run; are used in equal incrementsshort-run; can both be variedO long-run; can both be variedshort-run; are used in equal increments

Answer: option c (long-run; can both be varied) Explanation: In the long run, both labor and capital…

Answered: Units of Units of Labor, L Capital, K 1…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer questions number 15 and 16 on the basis of the following output data for a firm. Assume that the amounts of all non-labor resources are fixed. Number of Units of Workers Output 1 40 2 90 3 126 4 150 165 180 15. Refer to the above data. Average product is at a maximum when: A. five workers are hired. B. four workers are hired. C. three workers are hired. D. two workers are hired. 16. Refer to the above data. Diminishing marginal returns become evident with the addition of the: A. sixth worker. B. fourth worker. C. third worker. D. second worker.
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?
Q. Table 3 above shows how output varies with only one variable input used in production. If the cost of a unit of labor is $500, what is the approximate marginal cost of the 230th unit of output? a. $2.50 b. $8.50 c. $12.50 d. $50.00 e. $100.00
Discuss the content of the concepts of "short run" and "long run" as used in the theory of firm and relate them to returns to scale. 1.2 Give a formal definition of a separable production function, in words and mathematically; and provide a clear verbal description of what it means intuitively. 1.3 1.4 Why is duality in production of interest to a micro economist?
Suppose a firm's production function is Q=200L +5L2-0.08L³. Which of the following is the Average Production of Labor (APL)? Oa. 200+10L-0.24L² Ob. 10L-0.24L² Oc. 5L-0.08L² Od. 200+5L-0.08L²
1. Given the production function: q = 2KL, (a) Fill in the table below which has information on the short-run production function, the marginal product of labor (MPL), and the average product of labor (APL) if capital is held fixed at 3 units in the short-run. Labor Quantity of Output (MPL) (APL) 0 1 4 9 16 25 (b) Plot the short-run production function. (c) Plot the marginal and average products of labor on a new graph. (d) Does the law of diminishing marginal returns apply? If so, at what level of labor do diminishing marginal returns set in? (e) What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL)? (f) If the amount of capital increased to 6 units, what would happen to your graphs in part C)?
Consider the followng production function: 1 2 9 = x?x where x, and x, measure the employed quantities of input #1 and input #2, respectively. (a) Solve for and graph this firm's isoquant at q isoquant. 10. Please label three points along this (b) Does this production function exhibit increasing, decreasing, or constant returns to scale? Explain. Please corroborate your answer using a set of isoquants when the quantity of both imputs gets doubled. Note: Be sure to plot x2 along the y-axis.
In each blank type increasing, decreasing or constant to describe the returns to scale of the given production function. 1 a. The production function Q 3 = 3L°K exhibits returns to scale. b. The production function Q = LK? exhibits c. The production function Q = 3L +K exhibits returns to scale. %3D returns to scale.
Consider this production function. Study hours 2. 4 10 11 12 14 15 or more 13 Grade 20 33 42 50 57 63 69 73 78 81 84 86 88 89 90 1007 90 - 80 70 60 S0 40 30 20 10 Hours of study per day Select one or more: a. The average product of labour is falling as hours of study increase. O b. The marginal product of labour is constant as hours of study increase. O c. The marginal product of labour is rising as hours of study increase. U d. The marginal product of labour is zero beyond 15 hours. Final grade 9-
6
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Maria produces pizzas using labor, an oven, and flour. When Maria uses 4 workers she can produce 100 pizzas per day. When she uses 8 workers, she can produce 175 pizzas per day. True or false: Maria's production function displays decreasing returns to scale. True or False

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