Question 1

If two inputs can be substituted for each other at a fixed rate then:

Accepted Answer

A)   the inputs are perfect substitutes.
B)   the inputs are imperfect substitutes.
C)   the inputs are not substitutable.
D)   the amount of each input is the same along an isoquant.
E)   none of the above.

Question 2

A mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs or resources is called:

Accepted Answer

A)   a demand curve.
B)   a total revenue curve.
C)   a production function.
D)   the marginal rate of technical)  substitution.
E)   an isoquant curve

Question 3

The long run is a period of time long enough for at least one input, or factor of production, to vary as far as the individual firm is concerned.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is correct for a variable input "a" and short-run product curves?

Accepted Answer

A)   When TPa reaches a maximum, the MPa is zero.
B)   Then TPa reaches a maximum, the MPa is +1.
C)   When APa reaches a maximum, MPa is zero.
D)   When MPa reaches a maximum, APa is zero.
E)   None of the above is correct.

Question 5

The marginal product of a variable input is the rate of change of average product with respect to the input, all other things kept fixed.

Accepted Answer

A) True 
 B)False

Question 6

The short run is a period so brief that the amount of at least one input, or factor of production, is variable.

Accepted Answer

A) True 
 B)False

Question 7

The given production function exhibits which of the following?

Accepted Answer

A)   constant returns to scale - for every 100% increase in input, there is a 100% increase in output.
B)   decreasing returns to scale - for every 100% increase in input, there is a less than 100% increase in output.
C)   decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output
D)   increasing returns to scale - for every 100% increase in input, there is a 675% increase in output
E)   increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

Question 8

The marginal rate of technical) substitution is equal to the inverse of the slope of an isoquant.

Accepted Answer

A) True 
 B)False

Question 9

A production function is a mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs, or resources.

Accepted Answer

A) True 
 B)False

Question 10

If equal increments of one variable input are added while keeping the amounts of all other inputs fixed, and decreasing additions to total product begin, then:

Accepted Answer

A)   diminishing marginal returns have begun.
B)   the firm is employing the least cost combination of inputs.
C)   returns to scale are constant.
D)   returns to scale are decreasing.
E)   returns to scale are increasing.

Question 11

To an economist, for a firm to be operating in the short run,

Accepted Answer

A)   all inputs are variable.
B)   no more than one input can be fixed.
C)   all inputs are fixed.
D)   it must operate with its existing plant and equipment.
E)   at least one input is fixed.

Exam 5: Production Analysis

The long run is a period of time long enough for at least one input, or factor of production, to vary as far as the individual firm is concerned.

Correct Answer
verified

A production function is a mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs, or resources.

Correct Answer
verified

The marginal product of a variable input is the rate of change of average product with respect to the input, all other things kept fixed.

Correct Answer
verified

The marginal rate of technical) substitution is equal to the inverse of the slope of an isoquant.

Correct Answer
verified

If two inputs can be substituted for each other at a fixed rate then:

Correct Answer
verified

The given production function exhibits which of the following?

Correct Answer
verified

To an economist, for a firm to be operating in the short run,

Correct Answer
verified

The short run is a period so brief that the amount of at least one input, or factor of production, is variable.

Correct Answer
verified

A mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs or resources is called:

Correct Answer
verified

If equal increments of one variable input are added while keeping the amounts of all other inputs fixed, and decreasing additions to total product begin, then:

Correct Answer
verified

Which of the following statements is correct for a variable input "a" and short-run product curves?

Correct Answer
verified

Exam 5: Production Analysis

The long run is a period of time long enough for at least one input, or factor of production, to vary as far as the individual firm is concerned.

Correct AnswerverifiedShow Answer

A production function is a mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs, or resources.

Correct AnswerverifiedShow Answer

The marginal product of a variable input is the rate of change of average product with respect to the input, all other things kept fixed.

Correct AnswerverifiedShow Answer

The marginal rate of technical) substitution is equal to the inverse of the slope of an isoquant.

Correct AnswerverifiedShow Answer

If two inputs can be substituted for each other at a fixed rate then:

Correct AnswerverifiedShow Answer

The given production function exhibits which of the following?

Correct AnswerverifiedShow Answer

To an economist, for a firm to be operating in the short run,

Correct AnswerverifiedShow Answer

The short run is a period so brief that the amount of at least one input, or factor of production, is variable.

Correct AnswerverifiedShow Answer

A mathematical statement of the way that the quantity of output of a particular product depends on the use of specific inputs or resources is called:

Correct AnswerverifiedShow Answer

If equal increments of one variable input are added while keeping the amounts of all other inputs fixed, and decreasing additions to total product begin, then:

Correct AnswerverifiedShow Answer

Which of the following statements is correct for a variable input "a" and short-run product curves?

Correct AnswerverifiedShow Answer

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