2008ps3

2008ps3 - BUAD 351 - Economic Analysis for Business...

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BUAD 351 - Economic Analysis for Business Decisions Homework 3 due: Wed 03/05/2008 PART (i): multiple choice please provide the answers in the following box: question answer 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1. A strategy for deploying inputs to produce output is ine¢ cient if a. it would be possible to replace some of the workers with machinery or electronic equipment. b. it is possible to produce more output with the same inputs by organizing or deploying the same inputs in a di±erent manner. a. Producing more electricity requires more natural gas. As Calpine increases output, it must use more natural gas, so the cost increases. b. Calpine has diseconomies of scale. c. Calpine uses its most e¢ cient generators ²rst. If that does not provide su¢ cient capacity, it adds generators that are less e¢ cient. (Less e¢ cient generators produce electricity at higher cost). d. None of the above 3. Economies of scale occur when a. total cost falls as output increases. b. average cost falls as output increases. c. the cost curve shifts as output increases d. all of the above. of inputs using e¢ cient production methods. a. Production possibilities set b. E¢ cient production frontier c. Production function d. Production possibilities curve 5. The long run refers to a period of time over which a. The ²rm can change its level of output b. Only one input is ²xed c. Production technology increases d. All inputs are variable 1
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6. Suppose that the marginal product of a &rm±s labor is 10 units of output per hour. Also as-
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This note was uploaded on 07/23/2008 for the course BUAD 351 taught by Professor Eastin during the Spring '07 term at USC.

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2008ps3 - BUAD 351 - Economic Analysis for Business...

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