Question

Question Completion Statun QUESTION 1 1 pe if a fiem can adjust its employment of all inputs, then it is experiencing economies of scale G in the long run O off its expansion pach O Imited only by the capacity of its fixed capital QUESTION 2 1 pains Which of the following is *not classified as a capital input cement mixer restaurant oven 500 shares of General Motors stock o office photocopler QUESTION 3 1 peintm The association of each quantity of a variable input, like labor, to its total product is the short run production function average product of labor stage of production O expansion path QUESTION 4 1 points The marginal product of labor is defined as the additional output amributable to the last unit of labor employed the amount of ourput obtained, on average. from each of labor employed the percentage increase in output caused by a 1% rise in labor usage G the amount of capital that the fim can use to replace one unit of labor QUESTION S 1 paints The shapes of the total product and the marginal product cunves are related because an increase in total product puls marginal product up o marginal product gives the slope of total product o marginal product increases as total product increases the marginal product curve les above the total product curve Click Save and Submit to se and subeit. Click Sae All Ansurs to save all acers Save All Anwers Save

Answer 1

1. The correct option would be

• in the long run

In the long run, all the inputs are variable for the firm, meaning that the firm can adjust all of the inputs in the long run. Yet the economies of scale is experienced only in the long run by adjusting all the inputs, but the firm may not necessarily be experiences the economies of scale by doing so (firm may experience diseconomies of scale too). Also, capital is fixed only in short run, when not all inputs varies, and the firm is actually on the expansion path by doing the same.

2. The correct option would be

• 500 shares of GM stock

All the other option are what can be used to produce something and hence can be taken as capital input, except the shares of GM.

3. The correct option would be

• short run production function

In the short run, some inputs are fixed, and the relation between the production and variable input is basically the short run production function.

4. The correct option would be

• the additional output attributed to the last unit of labor employed

The MPL is the amount of production increased by increasing a unit labor (considered to be the last unit of labor employed). The second option suggests average product of labor, the third option is labor elasticity of output, while the last option is capital labor ratio.

5. The correct option would be

• marginal product gives the slope of total product

All the options except the last one are correct (MP curve is below the TP curve). But the TP and MP are related because the MP measures the rate of change of TP, ie MP gives the slope of the TP for a particular production level.