1. Suppose the production function is given by Q = 2K + 5L. What is the marginal product of labor when 15 units of capital and 10 units of labor are employed?

a. 2

b. 5

c. 25

d. 50

e. None of the above.

Question 7

1. Suppose that a firm’s production function is given by the equation Q = min {K, L}. What is the maximum amount of output that the firm can produce using 5 units of capital and 15 units of labor?

a. 3

b. 5

c. 8

d. 15

e. None of the above.

Question 8

1. Suppose that a firm’s production function is Q = 3K + 4L. What is the average product of capital when K = 5 and L = 10?

a. 3

b. 4

c. 9

d. 11

e. None of the above.

Question 9

1. Suppose that a firm’s production function is Q = K0.5L0.5 and capital is fixed at 1 unit. The average product of labor when L = 25 is:

Answer

a. 2/5.

b. 1/5.

c. 5.

d. 10.

e. None of the above.

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