ECON 1540 Lecture Notes - Logarithm

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tanhound988

22 Feb 2014

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Document Summary

Mathematical background: linear equations, nonlinear equations, measuring rates of change: the logarithmic function, modeling growth: the exponential function. Y = a + bx a, b positive parameters a: intercept portion of y that is independent of x (i. e. , value of. Y when x=0). b: slope response of y to a change in x (i. e. , ratio of the change in y to the change in x rise over run). Key feature: slope is not a function of position on the line (i. e. , not a function of the value of x). Measuring the total change in y resulting from a given change in. D y = slope d x, or d y = b d x. Links to calculus: slopes are analogous to derivatives: y/ x = b, total changes are measured using differentiation: Key difference between linear and nonlinear equations: slope becomes a function of x. Change in y resulting from a change in x:

Related Questions

The law of eventually diminishing marginal returns: (Points : 1)

a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns.
b. is a mathematical theorem that can be logically proved or disproved
c. is the rate at which one input may be substituted for another input in the production process
d. None of the above

The marginal product is defined as: (Points : 1)

a. the ratio of total output to the amount of the variable input used in producing the output
b. the incremental change in total output that can be produced by the use of one more unit of the variable input in the production process
c. the percentage change in output resulting from a given percentage change in the amount of the variable input X employed in the production process with Y
d. None of the above

The rate at which one input X may be substituted for another input Y in a production process, while total output remains constant, is: (Points : 1)

a. the slope of the isoquant curve
b. the marginal rate of technical substitution

c. equal to MPx/MPy

d. all of the above
e. none of the above

Marginal revenue product is: (Points : 1)

a. defined as the amount that an additional unit of the variable input adds to the total revenue
b. equal to the marginal factor cost of the variable factor times the marginal revenue resulting from the increase in output obtained
c. equal to the marginal product of the variable factor times the marginal product resulting from the increase in output obtained
d. a and b
e. a and c

Marginal factor cost is defined as the amount that an additional unit of the variable unit of the variable input adds to ____________. (Points : 1)

a. marginal cost
b. variable cost
c. marginal rate of technical substitution
d. total cost
e. none of the above

In the Cobb-Douglas production function Q=aL^?1.K^?2 ______________. (Points : 1)

a. the marginal product of labor (L) is equal to ?1
b. the average product of labor (L) is equal to ?2
c. if the amount of labor input (L) is increased by 1 percent, then output will increase by ?1 percent
d. a and b
e. a and c