Managerial Economics

A p r o d u c ti o n f u n c ti o n   Student Answer: a. tells you how inputs are affected by output b. tells you how output varies as inputs vary c. assumues that the sate of technology is given d. b+c e. none of the above   Points Received: 1 of 1   Comments: Q u e st i o n : The short run for a compa ny is   Student Answer: a. less than one year b. more than one year but less than tree years c. defined by calendar time elapsed d. none of the above   Points Received: 1 of 1   Comments: Q u e st i o n : In the product ion functio n: Q=2.6L .5 *k .4 *M .1 , returns to scale implied are:   Student Answer: a. 2.6 times the amount of inputs b. increasing returns c. a+b d. None of the above   Points Received: 1 of 1   Comments: Q u e st i o n : Given the product ion functio n: Q=6L 2 M 2 -.10L 3 M 3 , where L=units of labor and M=unit s of materia l. How many units of L maximi ze Q,   given M=10 is fixed? Student Answer: a. L=360 b. L=4 c. L=3600   Points Received: 1 of 1   Comments: Q u e st i o n : Given the produ ction functi on in 4 above, the numbe r of units of labor (L) that maxi mizes margi nal produ ct of labor given M=10 is   Student Answer: a. L=4 b. L=0 c. L=10 d. L=2 e. None of the above   Points Received: 1 of 1   Comments: Q u e st i o n : A compa ny should use all resour ces availa ble to reduce the numbe r of defect s produ ced to zero.   Student Answer: True False   Points Received: 1 of 1   Comments: Page: 236 Q u e st i o n : The law of eventu ally dimini shing margi nal return s:   Student Answer: a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns. b. is a mathematical theorem that can be logically proved or disproved c. is the rate at which one input may be substituted for another input in the production process d. None of the above   Points Received: 0 of 1   Comments: Q u e st i o n : The margi nal produ ct is define d as:   Student Answer: a. the ratio of total output to the amount of the variable input used in producing the output b. the incremental change in total output that can be produced by the use of one more unit of the variable input in the production process c. the percentage change in output resulting from a given percentage change in the amount of the variable input X employed in the production process with Y d. None of the above   Points Received: 1 of 1   Comments: Q u e st i o n : The rate at which one input X may be substit uted for anothe r input   Y in a produ ction proces s, while total output remai ns consta nt, is: Student Answer: a. the slope of the isoquant curve b. the marginal rate of technical substitution   d. all of the above e. none of the above c. equal to MPx/MPy   Points Received: 1 of 1   Comments: Page: Q u e st io n : Margin al revenu e product is:   Student Answer: a. defined as the amount that an additional unit of the variable input adds to the total revenue b. equal to the marginal factor cost of the variable factor times the marginal revenue resulting from the increase in output obtained c. equal to the marginal product of the variable factor times the marginal product resulting from the increase in output obtained d. a and b e. a and c   Points Received: 0 of 1   Comments:

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