MBA 651: Economic Analysis for Managers || 100% Verified.
In a production function, the input that refers to machinery is called: correct answers Capital
The _____________ run is a period of time during which at least one factor of production is
fixed correct answers Short
The measure of output per unit of input is called: correct answers Average product
Which of the following is a scheme used by managers to ensure maximum worker effort? correct
answers Incentive structures
In a linear production function, inputs are: correct answers Perfect substitutes
In a production function, the input that refers to workers is called: correct answers Labor
The _______________ run is a period of time during which a manager can change all factors of
production. correct answers Long
What is the analytical tool that defines a combination of inputs that yields the same output?
correct answers Isoquant
Total product per worker is called: correct answers Average product of labor
A line that represents the combinations of inputs that will cost the producer the same amount of
money is called: correct answers Isocost line
In the production process, the manager must do which of the following correct answers - Ensure
the firm operates on the production function
- Establish the correct level of inputs
When the price of labor rises, firms have a tendency to use correct answers Less labor and more
capital
What must be true about combinations of labor and capital along a given isoquant? correct
answers They all must produce the same amount of output
Which of the following statements is correct? correct answers Average fixed costs decline
continuously as output expands
To minimize the cost of producing a given level of output, the marginal product per dollar spent
should be ________________ for all inputs correct answers Equal
When average total cost (ATC) is at its minimum, marginal cost(MC) ________________
average total cost (ATC) correct answers Equals
, In the long run all costs are: correct answers Variable
Suppose a firm expands its output and still incurs the same level of long-run average cost. What
is this condition called? correct answers Constant returns to scale
A firms economic costs are ______________ its accounting costs correct answers Larger than
Which function defines the cost of producing at least two types of output? correct answers Multi
product cost function
With respect to the short run average cost curves, what is true of the long run average cost curve?
correct answers - It equals short run average cost when short run curves use fixed inputs
optimally.
- It lies above no point on the short run average cost curves.
Suppose a firm expands its output and experiences lower long-run average cost. What is this
condition called? correct answers Economies of scale
Accounting costs are the costs most often associated with correct answers The cost of production
The multiproduct cost function assumes that all inputs are utilized correct answers Efficiently
What exists when an increase in the output of one product reduces the marginal cost of a second
product? correct answers Cost complementarity
For given input prices, isocosts farther from the origin are associated with: correct answers
Higher costs
What is the average product of labor, given that the level of labor equals 10, total output equals
1200 and the marginal product of labor equals 200 correct answers 120
With a linear production function correct answers There is a perfect substitutable relationship
between all inputs.
Economies of scope exists when correct answers C(Q1)+C(Q2) > C(Q1,Q2)
When there are economies of scope between two products which are separately produced by two
firms, merging into a single firm correct answers Can accomplish a reduction in costs
Which of the following is not a means of acquiring product and process innovations? correct
answers Mass production of the existing product
An isocost line correct answers Represents the combinations of K and L that cost the firm the
same amount of money
In a production function, the input that refers to machinery is called: correct answers Capital
The _____________ run is a period of time during which at least one factor of production is
fixed correct answers Short
The measure of output per unit of input is called: correct answers Average product
Which of the following is a scheme used by managers to ensure maximum worker effort? correct
answers Incentive structures
In a linear production function, inputs are: correct answers Perfect substitutes
In a production function, the input that refers to workers is called: correct answers Labor
The _______________ run is a period of time during which a manager can change all factors of
production. correct answers Long
What is the analytical tool that defines a combination of inputs that yields the same output?
correct answers Isoquant
Total product per worker is called: correct answers Average product of labor
A line that represents the combinations of inputs that will cost the producer the same amount of
money is called: correct answers Isocost line
In the production process, the manager must do which of the following correct answers - Ensure
the firm operates on the production function
- Establish the correct level of inputs
When the price of labor rises, firms have a tendency to use correct answers Less labor and more
capital
What must be true about combinations of labor and capital along a given isoquant? correct
answers They all must produce the same amount of output
Which of the following statements is correct? correct answers Average fixed costs decline
continuously as output expands
To minimize the cost of producing a given level of output, the marginal product per dollar spent
should be ________________ for all inputs correct answers Equal
When average total cost (ATC) is at its minimum, marginal cost(MC) ________________
average total cost (ATC) correct answers Equals
, In the long run all costs are: correct answers Variable
Suppose a firm expands its output and still incurs the same level of long-run average cost. What
is this condition called? correct answers Constant returns to scale
A firms economic costs are ______________ its accounting costs correct answers Larger than
Which function defines the cost of producing at least two types of output? correct answers Multi
product cost function
With respect to the short run average cost curves, what is true of the long run average cost curve?
correct answers - It equals short run average cost when short run curves use fixed inputs
optimally.
- It lies above no point on the short run average cost curves.
Suppose a firm expands its output and experiences lower long-run average cost. What is this
condition called? correct answers Economies of scale
Accounting costs are the costs most often associated with correct answers The cost of production
The multiproduct cost function assumes that all inputs are utilized correct answers Efficiently
What exists when an increase in the output of one product reduces the marginal cost of a second
product? correct answers Cost complementarity
For given input prices, isocosts farther from the origin are associated with: correct answers
Higher costs
What is the average product of labor, given that the level of labor equals 10, total output equals
1200 and the marginal product of labor equals 200 correct answers 120
With a linear production function correct answers There is a perfect substitutable relationship
between all inputs.
Economies of scope exists when correct answers C(Q1)+C(Q2) > C(Q1,Q2)
When there are economies of scope between two products which are separately produced by two
firms, merging into a single firm correct answers Can accomplish a reduction in costs
Which of the following is not a means of acquiring product and process innovations? correct
answers Mass production of the existing product
An isocost line correct answers Represents the combinations of K and L that cost the firm the
same amount of money
