ch18
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____
1.
A firm has the production function
f
(
x
,
y
) =
x
1.40
y
1.90
. This firm has
a.
decreasing returns to scale and diminishing marginal product for factor
x
.
b.
increasing returns to scale and decreasing marginal product for factor
x
.
c.
decreasing returns to scale and increasing marginal product for factor
x
.
d.
constant returns to scale.
e.
None of the above.
____
2.
if the exponents in the CD production function were 0.80 for
x
1
and 0.20 for
x
2
, this production function
would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing
technical rate of substitution.
____
3.
In any production process, the marginal product of labor equals
____
4.
If a firm moves from one point on a production isoquant to another point on the same isoquant, which of the
following will certainly not happen?
____
5.
Which of the following production functions exhibit constant returns to scale? In each case y is output and
K
and
L
are inputs. (1)
y
=
. (2) y = 3
. (3)
y
=
. (4)
y
= 2
K
+ 3
L
.
a.
1, 2, and 4
b.
2, 3, and 4
c.
1, 3, and 4
d.
2 and 3
e.
2 and 4
____
6.
A firm has the production function
f
(
X
,
Y
) =
, where
X
is the amount of factor
x
used and
Y
is the
amount of factor
y
used. On a diagram we put
X
on the horizontal axis and
Y
on the vertical axis. We draw
some isoquants. Now we draw a straight line on the graph and we notice that wherever this line meets an
isoquant, the isoquant has a slope of 23. The straight line we drew
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
____
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 TOOSSI
 Economics, Economics of production, Mary Magnolia

Click to edit the document details