Intermediate Microeconomics: A Modern Approach, Seventh Edition

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ECONOMICS 300 FINAL EXAM SPRING 2005 PLEDGE: ____________________________ NAME: ______________________________ 1. (8) Fill out the missing spaces in the following table with the words None, One, Some , Many , or High : Perfect Competition Monopolistic Competition Monopoly Oligopoly Number of Firms Many Barriers to Entry Product Differentiation None None Strategic Interaction between Firms None 2. (5) Suppose that a firm produces output (Q) using two inputs (L and K) using the production function Q = L 2 K. What is the technical rate of substitution when the firm uses 10 units of each input? Provide a definition.
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2 3. (3) The following production function has _______ returns to scale and a _______ marginal product for x 2 . Q(x 1 , x 2 ) = x 1 .3 x 2 .7 . a. Increasing, Diminishing. b. Constant, Diminishing. c. Increasing, Constant. d. Decreasing, Diminishing. 4. (2) A competitive firm uses one input to produce output. In the short run, the firm maximizes its profits when: a. The value of the marginal product is equal to the wage. b. The profit function has a slope of negative one. c. The marginal revenue is equal to zero. d. All of the above. 5. (2) A production isoquant indicates: a. Combinations of inputs that cost the same amount. b. Combinations of inputs that yield the same level of profit. c. Combinations of inputs that have constant returns to scale. d.
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This homework help was uploaded on 01/31/2008 for the course ECON 300 taught by Professor Nonnenmacher during the Spring '08 term at Allegheny.

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05 exam3 - ECONOMICS 300 FINAL EXAM SPRING 2005 PLEDGE: _...

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