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ch18-21 - ch18 Multiple Choice Identify the choice that...

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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
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