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Exam (elaborations)

Badm 7200E Exam 3 Questions With Verified Answers.

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Badm 7200E Exam 3 Questions With Verified Answers.

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BADM 7200E EXAM 3 QUESTIONS WITH VERIFIED
ANSWERS

Question 1
Correct 2.00 points out of 2.00


In the long run, a firm is said to be experiencing decreasing returns to scale if a 10 percent increase in
inputs results in



a. a decrease in output from 100 to 90.

b. an increase in output from 100 to 110.

c.
a decrease in output from 100 to 85.



d. an increase in output from 100 to 105.


Your answer is correct.
The correct answer is:
an increase in output from 100 to 105.

, Question 2
Correct 5.00 points out of 5.00

Suppose a firm faces the following average and marginal products of labor:

APL = 50 + 2L - 0.05L2
MPL = 50 + 4L - 0.15L2

At what value of labor does Stage II of production begin?


Answer: 20


The correct answer is: 20

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