Quiz 1 W2001 - Economics 2G03/2X03 W2001 Section 4 Quiz 1...

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Economics 2G03/2X03 W2001 Section 4 Quiz 1 Total Marks=65 Instructor: Fred Aswani January 31 st 2001 Section 1. (20 Marks). Each question is worth 5 marks. 1. The conditional input demands for input 1 and input 2, given the production function y=min (az 1 ,bz 2 ), are a. z 1 =ay, z 2 =by b. z 1 =by, z 2 =ay c. z 1 =y/a, z 2 =y/b d. z 1 =y/b, z 2 =y/a e. None of the above 2. The defining characteristics of decreasing returns to scale may be summarized as: a. F(cK,cL) > cF(K,L) b. F(cK,cL)=cF(K,L) c. F(cK,cL)< cF(K,L) d. All of the above 3. Diminishing marginal productivity begin to occur when a. The slope of the ray from the origin reaches a maximum b. The total product curve reaches a maximum c. The slope of the total product curve reaches a maximum d. The marginal product curve intersects the average product curve 4. With production function Q= -0.2L 3 + 18L 2 + 1620L, where Q is output and L is labor. Average Product of labor is maximum when L is a. 90 b. 45 c. 30 d. 10 e. None of the above
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Section 2. (45 Marks).
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This note was uploaded on 06/18/2011 for the course ECON 2X03 taught by Professor Jamesbruce during the Spring '10 term at McMaster University.

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Quiz 1 W2001 - Economics 2G03/2X03 W2001 Section 4 Quiz 1...

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