Question

hird de to Figure 3-13. One difference between F and is that Point G t able with , but posts Arm are fully employed at polt bo moral pot More output can be produced at polut but no additional output can be produced d. This con produces more cookies al point than at pol F. 10. If production is given by Q - doubling both inputs (a) more than doables output (1) exactly doubles output (e) Increases output less than double (d) leaves output unchanged. 11. Supplex (P) can be fed combedd (C) bebedoed (5) wuch that the production If the price of feed is $4 and the price of soybean feed Is So, what is the cost-im ge 300 dhe (a) C = 100 (b) S 50 (C) C50, S25 (d) - 20, S-50 12. 33. Suppose a production function Kit and in the short cap s Tental rate on capital is $35, the fixed cost is (A) $2,000 (b) $1,800 (c) $2,625 (d) $1,825 13. As long as marginal cost is above average cost, average cost will be (a) falling (b) rising (c) constant (d) changing in a direction that camot be determined without more information 14. For a constant-returns-to-scale production function (a) marginal costs are constant but the average cost curve us a che (b) both average and marginal costs are constant (e) marginal cost has a U-shape; average costs are constant

Answer 1

9. The point F lies on the PPF and the point G lies below the PPF. Therefore, at point F all the resources are fully employed but in case of point G the resources are underutilized. (Note: image is little blur thus it seems to me that G is under PPF).

Option B.

10. Given,

774 = 0

Now, when both the inputs are doubled then the new production function will be

Q = (2K)+(21)

Q=26+) K L

Q = 2 x

Therefore, we can see the new production function also increases in the same proportion that is doubles.

B. Exactly doubles output.

11. I am really sorry unable in getting the equation clearly please consider this submission.

12. It is given the in the short run the capital is fixed at 75 units and the rent per unit is $ 35.

Fixed cost = $ 35 × 75 = $ 2625

13. As long as the MC is above AC then, the Average cost would be rising.

Option B.

14. In case of constant returns to scale the long run average total cost curve is constant. Fourth option is not provided so not sure about the last option.

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