26Midterm+II+NO+ANS+Vesrison+B

26Midterm+II+NO+ANS+Vesrison+B - UCI- Winter 2011 Econ 100...

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UCI- Winter 2011 Econ 100 A-Midterm II Prof El Hag- Version B Part I: Please answer all of the following multiple choice questions (possible points 15) 1) You are currently using three printing presses and five employees to print 100 sales manuals per hour. If the MRTS at this point is -0.5, then you would be willing to exchange __________ employees for two more printing presses in order to maintain current output. A) zero B) one C) two D) three 2) According to the diagram below, where each isoquant's output level is marked to the right of the isoquant, production is characterized by A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) increasing, constant and decreasing returns to scale. 3 . Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 5 units of capital and 10 units of labor are employed? a. 3 b. 4 c. 11 d. 45
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4) Which of the following production functions exhibits constant returns to scale? A) q = KL B) q = KL 0.5 C) q = K + L D) q = log(KL) 5. The equation below gives the degree of economies of scope (SC): SC = where C(Q 1 ) is the cost of producing output Q 1 , C(Q 2 ) is the cost of producing output Q 2 , and C(Q 1, Q 2 ) is the joint cost of producing both outputs. If SC is negative: A) there are neither economies nor diseconomies of scope. B) there are economies of scope.
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26Midterm+II+NO+ANS+Vesrison+B - UCI- Winter 2011 Econ 100...

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