LSU AGEC 2003 EXAM 2 QUESTIONS
AND ANSWERS 100% PASS 2026/2027
Elastic - ANS A supply Elasticity that is greater then 1.0 is referred to as
Inelastic - ANS A supply elasticity that is less then 1.0 is referred to as
Isorevenue Line - ANS The line representing all possible combinations of two products sold
that will bring the same total revenue is referred to as the
Least-Cost Combination - ANS Minimizing the resource cost of producing a particular
commodity is referred to as the
Isocost Line - ANS The line which shows the amounts of two resources that can be bought for
a given amount of money is referred to as the
Production Possibilities - ANS the full range of feasible allocations for a firm is referred to as
its
isoquant - ANS the line showing all combinations of inputs that result in the same quantity of
an output is referred to as the
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, expansion path - ANS the line showing the revenue and profit maximizing productions of two
products as the firm increases or decreases its levels or output is referred to as the
marginal rate of production substitution - ANS the slope of the production possibilities curve
is referred to as the
marginal rate of substitution - ANS the slope of an isoquant is known as the
true - ANS T/F: The optimal combination of two products is to produce where the Marginal
Rate of Product Substitution is equal to the ratio of the output prices
true - ANS T/F: The Expansion Path shows the revenue (and profit) maximizing proportions of
Y1 and Y2 as the firm expands or contracts
true - ANS T/F: The isocost curve identifies all the combinations of the two given inputs that
can be afforded given a specific expenditure level to produce a given level of output
true - ANS T/F: The Budget Line shows all possible combinations of two products sold that
will bring the same total revenue
true - ANS T/F: The Marginal Rate of Product Substitution measures the differing rates at
which either product will substitute for the other along the production possibilities curve
true - ANS T/F: The Isoquant shows all possible combinations of two products that can be
produced given the set of resources in the firm's control.
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AND ANSWERS 100% PASS 2026/2027
Elastic - ANS A supply Elasticity that is greater then 1.0 is referred to as
Inelastic - ANS A supply elasticity that is less then 1.0 is referred to as
Isorevenue Line - ANS The line representing all possible combinations of two products sold
that will bring the same total revenue is referred to as the
Least-Cost Combination - ANS Minimizing the resource cost of producing a particular
commodity is referred to as the
Isocost Line - ANS The line which shows the amounts of two resources that can be bought for
a given amount of money is referred to as the
Production Possibilities - ANS the full range of feasible allocations for a firm is referred to as
its
isoquant - ANS the line showing all combinations of inputs that result in the same quantity of
an output is referred to as the
@2026 ALLRIGHTS RESERVED 1
, expansion path - ANS the line showing the revenue and profit maximizing productions of two
products as the firm increases or decreases its levels or output is referred to as the
marginal rate of production substitution - ANS the slope of the production possibilities curve
is referred to as the
marginal rate of substitution - ANS the slope of an isoquant is known as the
true - ANS T/F: The optimal combination of two products is to produce where the Marginal
Rate of Product Substitution is equal to the ratio of the output prices
true - ANS T/F: The Expansion Path shows the revenue (and profit) maximizing proportions of
Y1 and Y2 as the firm expands or contracts
true - ANS T/F: The isocost curve identifies all the combinations of the two given inputs that
can be afforded given a specific expenditure level to produce a given level of output
true - ANS T/F: The Budget Line shows all possible combinations of two products sold that
will bring the same total revenue
true - ANS T/F: The Marginal Rate of Product Substitution measures the differing rates at
which either product will substitute for the other along the production possibilities curve
true - ANS T/F: The Isoquant shows all possible combinations of two products that can be
produced given the set of resources in the firm's control.
@2026 ALLRIGHTS RESERVED 2
