ECP3704 Exam 2 Questions with Complete Solutions 100% Verified| Latest
Update Graded A+
When there are economies of scope between two products which are separately produced by
two firms, merging into a single firm can
Accomplish an increase in sales
Accomplish a reduction in costs
Lead to an increase in cost
Lead to a reduction in sales Accomplish a reduction in costs
An isocost line
Represents the combinations of w and K that cost the firm the same amount of moey
Represents the combinations of K and L that cost the firm the same amount of money
Represents the combinations of r and w that cost the firm the same amount of money
Has a convex shape Represents the combinations of K and L that cost the firm the same
amount of money
With a linear production function there is a
Perfect complementary relationship between all inputs
Perfect substitutable relationship between all inputs
Fixed-proportions relationship between all inputs
Variable-proportions relationship between all inputs Perfect substitutable relationship
between all inputs
When marginal cost curve is below an average cost curve, average cost is
Increasing with output
Declining with output
, Not varying with output
None of the statements associated with this question are correct Declining with output
It is profitable to hire labor so long as the
MPL is greater than wage
MPL is less than wage
VMPL is less than wage
VMPL is greater than wage VMPL is greater than wage
The Leontief production function
Implies inputs are used in variable proportions
Implies inputs are used in fixed proportions
Is Q = max {bK, cL}
Is Q = aK + bL Implies inputs are used in fixed proportions
The short-run is defined as the time-frame
In which there are no fixed factors of production
In which there are fixed factors of production
Less than one year
Less than three years In which there are fixed factors of production
For the cost function C(Q) = 200 + 3Q + 8Q^2 + 4Q^3, what is the average fixed cost of
producing six units of output?
18.31
212.61
42.12
Update Graded A+
When there are economies of scope between two products which are separately produced by
two firms, merging into a single firm can
Accomplish an increase in sales
Accomplish a reduction in costs
Lead to an increase in cost
Lead to a reduction in sales Accomplish a reduction in costs
An isocost line
Represents the combinations of w and K that cost the firm the same amount of moey
Represents the combinations of K and L that cost the firm the same amount of money
Represents the combinations of r and w that cost the firm the same amount of money
Has a convex shape Represents the combinations of K and L that cost the firm the same
amount of money
With a linear production function there is a
Perfect complementary relationship between all inputs
Perfect substitutable relationship between all inputs
Fixed-proportions relationship between all inputs
Variable-proportions relationship between all inputs Perfect substitutable relationship
between all inputs
When marginal cost curve is below an average cost curve, average cost is
Increasing with output
Declining with output
, Not varying with output
None of the statements associated with this question are correct Declining with output
It is profitable to hire labor so long as the
MPL is greater than wage
MPL is less than wage
VMPL is less than wage
VMPL is greater than wage VMPL is greater than wage
The Leontief production function
Implies inputs are used in variable proportions
Implies inputs are used in fixed proportions
Is Q = max {bK, cL}
Is Q = aK + bL Implies inputs are used in fixed proportions
The short-run is defined as the time-frame
In which there are no fixed factors of production
In which there are fixed factors of production
Less than one year
Less than three years In which there are fixed factors of production
For the cost function C(Q) = 200 + 3Q + 8Q^2 + 4Q^3, what is the average fixed cost of
producing six units of output?
18.31
212.61
42.12
