Microeconomics_ch6_MC

Microeconomics_ch6_MC - Ch. 6 1. The production function...

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Page 1 Ch. 6 1. The production function represents A) the quantity of inputs necessary to produce a given level of output. B) the various recipes for producing a given level of output. C) the minimum amounts of labor and capital needed to produce a given level of output. D) the set of all feasible combinations of inputs and outputs. 2. A labor requirements function represents A) the set of feasible levels of labor that will produce a given level of output. B) the various recipes for producing a given level of output. C) the minimum amount of labor necessary to produce a given level of output. D) the set of all feasible combinations of labor and outputs. 3. Factors of production are A) inputs and outputs. B) outputs only C) inputs only D) the minimum set of inputs that can produce a certain fixed quantity of output. 4. Technically inefficient points are A) points in the production set but not on the production function. B) points on the production function. C) points contained in neither the production set nor the production function. D) points that are never observed in practice. 5. Identify the truthfulness of the following statements. I. Because the production function identifies the maximum amount of output that can be produced from a given combination of inputs, only technically efficient input combinations are found on the production function. II. The production function identifies the technically feasible combinations of inputs. A) Both I and II are true. B) Both I and II are false. C) I is true; II is false. D) I is false; II is true.
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Page 2 6. The labor requirements function is derived from A) the demand curve. B) the supply curve. C) the production function. D) the capital requirement function. 7. The production set represents A) the set of all technically feasible combinations of inputs and outputs. B) the technically efficient combinations of inputs and outputs. C) the maximum output the firm can produce from a given level of inputs. D) the minimum amounts of inputs necessary to produce a given level of output. Use the following to answer questions 8-11: 8. Average product reaches a maximum when labor equals A) 100 B) 200 C) 300 D) 400 9. Marginal product reaches a maximum when labor equals A) 100 B) 200 C) 300 D) 400
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Page 3 10. When labor equals 100 A) average product is less than marginal product B) average product is greater than marginal product. C) average product is equal to marginal product. D) the relationship between average product and marginal product cannot be determined from a total product graph. 11. Diminishing marginal returns set in at labor equals A) 100 B) 200 C) 300 D) 400 12. Increasing marginal returns occur when the total product function is A) decreasing.
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This note was uploaded on 01/17/2009 for the course ECONOMICS ECON2101 taught by Professor Stevenxu during the Spring '09 term at HKU.

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Microeconomics_ch6_MC - Ch. 6 1. The production function...

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