Textbook Notes (363,140)
Economics (697)
Chapter

# ch08.pdf

20 Pages
95 Views

School
Western University
Department
Economics
Course
Economics 2150A/B
Professor
Peter G Brown
Semester
Winter

Description
File ch08 Chapter 8 Cost CurvesMultiple Choice1The longrun total cost curve showsathe various combinations of capital and labor that will produce different levels of output at the same costbthe various combinations of capital and labor that will produce the same level of outputcthe minimum total cost to produce any level of output holding input prices fixed and choosing all inputs to minimize costdfor a fixed level of capital the minimum cost to produce a given level of outputAns CPage Reference 265266DifficultyEasyHeadingLongCost Curves2A longrun total cost curveamust be equal to zero when the level of output is zerobmay be greater than or equal to zero when the level of output is zerocmust be decreasing when the level of output is zerodwill be equal to fixed cost which is greater than zero when the level of output is zeroAns APage Reference 265266DifficultyEasyHeadingLongRun Cost Curves3Suppose for a particular production function the costminimizing level of labor isand the costminimizing level of capital is Ifandthe longrun total cost curve isabcdAns CPage Reference 266267DifficultyMediumHeadingLongRun Cost Curves4Suppose for a particular production function the costminimizing levels of labor and capital areIfandwhat is the equation for longrun total costabcdAns CPage Reference 266267DifficultyMediumHeadingLongRun Cost Curves5Suppose that a firms production function can be specified as Which of the following accurately describes this firms long run total cost functionabcdAns CPage Reference 266267DifficultyHardHeadingLongRun Cost Curves6Assume that capital is measured along the vertical axis and labor is measured along the horizontal axisThe firm has an initial isocost line called Now suppose that the price of labor doubles and the price of capital falls by onehalfWhich statement accurately describes the movement of the isocost line fromto
More Less

Related notes for Economics 2150A/B

OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Join to view

OR

By registering, I agree to the Terms and Privacy Policies
Just a few more details

So we can recommend you notes for your school.