ECON 3411 Study Guide - Quiz Guide: Average Variable Cost, Substitute Good, Variable Cost

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tealcaribou630

17 Jun 2016

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Econ 301 homework chapter 5: a firm can manufacture a product according to the production function: Q = f(k,l) = k3/4l1/4: calculate the average product of labor, apl, when the level of capital is fixed at 81 units and the firm uses 16 units of labor. What is the average product of labor when the firm uses 256 units of labor: find an expression for the marginal product of labor, mpl, when the amount of capital is fixed at 81 units. Instruction: the second response is the exponent on l in the expression. Then, illustrate that the marginal product of labor depends on the amount of labor hired by calculating the marginal product of labor for 16 and 81 units of labor. Instruction: round your responses to 3 decimal places. Mpl when l = 81: suppose capital is fixed at 81 units. Instruction: enter your response as a whole number.

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4. TP_L= - L³+ 8 L²+ 187 L

MP_L= - 3 L²+ 16 L +187

How many units of labor (L*) or the number of laborers should the firm hire to maximize output (TP_L)?

What is the total amount of output (TP_L) produced?

What is the average product of labor (AP_L)?

5. TP_L= - 0.025 L³ + 5 L²+ 1000 L

MP_L= - 0.075 L²+ 10 L +1000

How many units of labor (L*) or the number of laborers should the firm hire to maximize output (TP_L)?

What is the total amount of output (TP_L) produced?

What is the average product of labor (AP_L)?

6. TP_L= - 0.4 L³ + 4 L²+ 40 L

MP_L= - 1.2 L²+ 8 L +40

How many units of labor (L*) or the number of laborers should the firm hire to maximize output (TP_L)?

What is the total amount of output (TP_L) produced?

What is the average product of labor (AP_L)?

coraldog121

1) The supply curve of a perfectly competitive firm is

a) Its entire MC curve

b) The upward-sloping portion of its MC Curve

c) It's MC Curve above shutdown point

d) Its MR Curve

2. The Long Run supply curve in a constant cost industry is

a) Upward sloping and linear

b) Downward sloping and linear

c) Horizontal and linear

d) Concave upwards

3. The curve which shows different combinations of inputs that yield the same level of output, is called

a) An isoquant

b) An isocost curve

c) Production function

d) Production possibility curve

4. When labor used is 12 units and output is 36, then

a) The marginal product of labor is 3

b) The total product of labor is 1/3

c) The average product of labor is 3

d) None of the above

5. Say the average product of 6 workers is 15. If the marginal product of the 7^th worker is 18, then

a) Marginal product is falling

b) Marginal product is constant

c) Average product is rising

d) Average product is falling

6. Which one of the following statements is TRUE?

a) AP_L cuts the MP_L curve from above

b) MP_L cuts the AP_L curve from above, at the maximum point of the AP_L curve

c) Average and marginal product do not intersect

d) AP_L cuts the MP_L curve from below.

7. The MRTS is equal to the

a) The slope of the total product curve

b) Change in output divided by the change in labor

c) Change in output minus the size of capita

d) Ratio of the marginal products of the inputs

silvermallard649

Consider the various short-run cost curves.

(a) why is the total variable cost curve TVC shaped the way it is? In explaining, go back to the most basic assumptions about what happens when a firm produces output in the short run.

(b) When marginal cost MC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve(I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?

(c) When average variable cost AVC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve (I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?

(d) Suppose that, for a particular type of firm, the MPL is not diminishing, but it's also not increasing. What does the MCcurvefor this firm look like? Why might it make sense to think of the firm's capital being, say, a computer network, that multiple workers can use at the same time without slowing down the network?

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ECON 3411 Study Guide - Quiz Guide: Average Variable Cost, Substitute Good, Variable Cost

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