Homework Answers
In the long run all inputs are variable so the firm compares the marginal product per dollar of the inputs to find the best optimal quantity to minimize its cost and to maximize its profit
Therefore correct answer is option B. in the long run a firm is making the optimal input choice when the marginal product per dollar are equal among all inputs
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Which of the following statements is true? a. In the short run all inputs are fixed....
Which of the following statements is TRUE? a. A firm plans in the short run and...
Which of the following statements is TRUE? a. A firm plans in the short run and operates in the long run. b. In the long run a firm can change all but one input. c. In the long run all inputs are variable. d. In the short run all inputs are fixed.
Suppose that a firm is producing in the short run when machine number is fixed. It...
Suppose that a firm is producing in the short run when machine number is fixed. It knows that as the number of workers used in the production process increases, the number of output changes according to the following table: # of workers # of output 0 0 1 10 2 17 3 22 # of workers # of output 4 25 5 26 6 25 7 23 1. Calculate the marginal and average products of labor for each additional worker....
Question 1 (1 point) 1. The short run is a period of time in which the...
Question 1 (1 point) 1. The short run is a period of time in which the amount of output is fixed. nothing the firm does can be altered. the quantity of at least one factor of production is fixed. prices and wages are fixed. Question 2 (1 point) 2. When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of...
The law of diminishing returns suggests that, in the short run, the marginal product of a...
The law of diminishing returns suggests that, in the short run, the marginal product of a variable input eventually diminishes because: at least one of the other inputs is fixed. demand is too weak to allow a firm to sell additional output. none of the other inputs is fixed. all inputs are being increased at the same time.
Diminishing marginal productivity a. means that adding one more unit of the variable input will reduce...
Diminishing marginal productivity a. means that adding one more unit of the variable input will reduce total product. b. occurs when the marginal product curve begins to slope downward c. occurs eventually because each additional unit of the variable unit has, on average, fewer units of the fixed input with which to work. d. both a and c e. both b and c 7. The marginal rate of technical substitution is a. the rate at which the firm can substitute...
25. Which of the following inputs is most likely to be "fixed" in the short run?...
25. Which of the following inputs is most likely to be "fixed" in the short run? a) Labor b) Capital c) Energy d) Raw material 26. Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. Economists would classify this as a) A short-run decision b) A long-run decision c)Neither a short-run nor long-un decision d)Both a short-run and a long-run decision 27. Which of the following is true of the typical relationship...
1. In the case of a short-run production function: all of the inputs are variable. at...
1. In the case of a short-run production function: all of the inputs are variable. at least one of the inputs is fixed. the amount of labor employed is held constant. all of the inputs are fixed. 2. In the long-run production function, all of the inputs to the production process are allowed to vary. True False 3. In which of the following situations would a firm be more likely to rely on a capital-intensive method of production? When labor...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because...
The short run marginal cost curve in the traditional microeconomic model of production eventually rises because of a. diseconomies of scale. b. diminishing marginal revenues. c. rising fixed costs. d. increasing marginal productivity of variable inputs. e. diminishing marginal returns. . If the long-run average cost of production falls as the firm increases its level of output, then the firm exhibits a. constant returns to scale. b. constant marginal costs. c. economies of scale. d. diseconomies of scale. e. diminishing...
Which of the following statements about the law of diminishing returns are Correct? The law of...
Which of the following statements about the law of diminishing returns are Correct? The law of diminishing returns says that a firm’s marginal cost curve will eventually slope upwardly as it produce more and more output. The existence of fixed inputs ensures that the law of diminishing returns will eventually set in as more variable inputs are added to the production. The law of diminishing returns ensures that diseconomies of scale will eventually set in as more inputs are added...
In the short run: options: 1) all inputs are fixed. 2) all inputs are variable. 3)...
In the short run: options: 1) all inputs are fixed. 2) all inputs are variable. 3) some inputs are fixed and some inputs are variable. 4) the quantity of output is fixed.
Question 1 (1 point) 1. The short run is a period of time in which the amount of output is fixed. nothing the firm does can be altered. the quantity of at least one factor of production is fixed. prices and wages are fixed. Question 2 (1 point) 2. When the demand for electricity peaks during the hottest days of summer, Florida Power and Light Company can generate more electricity by using more fuel and increasing the working hours of...
25. Which of the following inputs is most likely to be "fixed" in the short run? a) Labor b) Capital c) Energy d) Raw material 26. Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. Economists would classify this as a) A short-run decision b) A long-run decision c)Neither a short-run nor long-un decision d)Both a short-run and a long-run decision 27. Which of the following is true of the typical relationship...
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