Clicker questions - Production _ Competative Market Equilibrium

Clicker questions - Production _ Competative Market Equilibrium

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Lecture 9: Production Econ 100A Prof. Reynolds
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What is the “TRS=ratio of input costs” when the production function is x=30 l 1/3 k 1/3 a. 30 l -2/3 k 1/3 =w/r b. 30 l -1/3 k -2/3 =w/r c. k/l=w/r d. l -2/3 k -2/3 =w/r e. l 1/3 k 1/3 =w/r
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To solve the profit maximization problem when x=30 l 1/3 k 1/3 , what is the other equation needed besides the one we just found? a. Marginal revenue product of labor = wage b. Marginal revenue product of capital = rent c. The production function d. The cost minimization function e. We don’t need anything else
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Solve the system of equations of the previous two problems for optimal capital & labor usage. What is optimal output for the production function x=30 l 1/3 k 1/3 a. 30(30p) 2/3 /(wr) b. Something else – Prof. Reynolds messed up her math
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a. w(x 3 /27000 k)+rk b. wl+r(x 3 /27000 l) c. 30(wl+rk) 1/3 k 1/3 d. 90 l 2/3 k -2/3 e. Both a & b work Solving the cost minimization problem using the plug & chug method for the production function x=30 l 1/3 k 1/3 , which of the following is the correct “plugged in” equation?
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In terms of x, r, and w, what are the optimal k & l for the cost minimization problem of the production function x=30 l 1/3 k 1/3
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terms of x is:
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This note was uploaded on 09/11/2011 for the course ECON 100A taught by Professor Woroch during the Spring '08 term at University of California, Berkeley.

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Clicker questions - Production _ Competative Market Equilibrium

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